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Department of Justice Targets Nursing Fraud with New Task Forces
Friday, April 8, 2016

On March 30, 2016, the U.S. Department of Justice launched 10 regional task forces targeting “grossly substandard care” in nursing homes and other long-term care facilities across the country. The task forces combine federal, state and local prosecutors, law enforcement, and other agencies to root out and prosecute such providers for Medicare and Medicaid fraud, decreasing the department’s historic reliance on whistleblower allegations for such claims.

Nursing providers and owners whose facilities fall short of Medicare’s quality-of-care standards face potential liability under the False Claims Act (FCA) and even significant prison time. These task forces will increase the Department’s scrutiny on nursing home operations and could lead to more FCA cases and prosecutions for the Department nationwide.

The launch was spearheaded under the Elder Justice Initiative, which coordinates the Department’s investigative and enforcement efforts regarding senior care. Task forces have been created in the Northern District of California, Northern District of Georgia, District of Kansas, Western District of Kentucky, Northern District of Iowa, District of Maryland, Southern District of Ohio, Eastern District of Pennsylvania, Middle District of Tennessee and the Western District of Washington.

Some of the Department’s recent investigations into nursing violations have carried serious consequences. In 2014, a long-term care provider and its subsidiary paid the government $38 million to settle a case involving allegations of insufficient nurse staffing, inadequate catheter care and failure to follow appropriate preventative protocols. The provider also agreed to have an independent quality monitor oversee its nursing care for five years. In a separate 2014 case, a nursing home owner was sentenced to 20 years in prison, 10 of which were attributed to “deplorable” facility conditions, including fly infestations and leaky roofs.

Given the Department’s increased focus on nursing homes and long-term care facilities, providers and owners should take the opportunity to review their practices and procedures and ensure compliance.

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