Class Action Settlement Tied to $1B Investment in Moving Nursing Home Residents to HCBS

One state has committed more than $1.1 billion to boosting community living options for people who would otherwise be in a nursing home, following a landmark class action lawsuit settlement. The 54-page settlement agreement still needs a judge’s approval. The original case, titled Marsters v. Healey, involved six residents who were unable to leave their […]

Omega Announces Potential Settlement Involving Changes to Corporate Diversity Practices

A legal settlement reached by Omega Healthcare Investors Inc. (NYSE: OHI), if finalized, will change some of the real estate investment trust’s corporate governance policies and practices related to diversity, equity, inclusion and belonging, the company announced Monday. Omega’s insurance company will also pay $850,000 in attorney fees and expenses, while a court hearing scheduled […]

Nursing Home Chain Petersen Files for Chapter 11 Bankruptcy

One of the largest nursing home operators in the U.S., Petersen Health Care, on Wednesday filed for bankruptcy, following cyberattacks and defaults on government-backed loans. The Illinois-based operator filed for Chapter 11 protection in Delaware bankruptcy court with more than $295 million in debt, according to a report from Reuters. About $45 million of that […]

California Nursing Home Chain Agrees To Pay Up to $15.5M Amid Physical, Sexual Assault Allegations

Following allegations of physical and sexual assaults, and neglect of patient medical care, California operator Mariner Health Care has agreed to pay up to $15.5 million in penalties, plus $2.25 million in costs, if unable to abide by terms related to patient safety and staffing levels. Mariner Health Care neither admitted to nor denied wrongdoing, […]

Nursing Home Operators Targeted in Increasing Number of Litigation Tied to 1099 Misclassification

Litigation tied to the use of independent contractors in the nursing home space has increased ever since the Department of Labor (DOL) in January cracked down on the criteria used to classify workers in the sector. Operators are being targeted, rather than the agencies supplying such staff, and the changes are bound to affect recruitment. […]

Nursing Home Mogul Philip Esformes Pleads Guilty to Medicare Fraud, Given No Additional Jail Time or Fines

Medicare fraudster Philip Esformes pleaded guilty on Thursday to health care fraud, laying to rest a longstanding effort to prosecute him after his 20-year sentence was commuted by former President Donald Trump. Esformes, previously convicted of one of the biggest Medicare frauds in 2019 for his involvement in a billion-dollar Medicare fraud scheme, pleaded guilty […]

In Suing Ohio Medicaid Department, Nursing Home Associations Allege Facilities Were ‘Significantly Shortchanged’

Nursing home associations in Ohio have sued the state Department of Medicaid last week over a Medicaid rate that does not match what’s needed to meet quality incentives. Ohio’s rebasing process splits Medicaid funding into two categories, with 60% based on meeting certain quality incentives and 40% reserved for the “base rate,” or a calculation […]

17 Petersen Nursing Homes Embroiled in Foreclosure Suits Involving Nearly $51M in Loans

An Illinois-based nursing home operator, which owns nearly 100 senior living properties across the state as well as others in Missouri and Iowa, faces legal challenges as prosecutors point to alleged unpaid loans. Petersen Health Care faces two foreclosure cases filed in the Illinois Northern District Court – litigation is linked to an alleged failure […]

Nursing Home Mogul Philip Esformes Agrees to Plea Deal in Medicare Fraud Case

In a major development for the nursing home industry, a plea agreement has been reached in the ongoing legal saga involving South Florida healthcare mogul Philip Esformes. Esformes, previously convicted in 2019 for his involvement in a billion-dollar Medicare fraud scheme, had his 20-year prison sentence commuted by former President Donald Trump in 2020, but […]

Medicaid Funding Suspended for Two More Nursing Homes in NJ, Owners Linked To Alleged Fraud

Two more nursing homes in New Jersey have their Medicaid funding suspended following allegations of massive fraud by the owners related to their New York facilities. Deptford Center for Rehabilitation and Healthcare, and Hammonton Center for Rehabilitation and Healthcare will lose their Medicaid funding on May 24, according to the Office of the State Comptroller […]

Iowa Might Join 14 States in Allowing Room Cameras in Nursing Homes

Iowa nursing homes may see cameras in resident rooms – with state legislators progressing a bill on the matter. The legislation will allow the use of “granny cams” despite many operator misgivings, providing families with a video feed of activity inside a resident’s room, according to a report published in the Iowa Capital Dispatch. Fourteen […]

DOL Alleges Back Wages Owed to Over 600 Next Step Healthcare Staff in 25 Nursing Homes

More than 600 skilled nursing workers may be owed back wages across 25 Massachusetts facilities in 21 communities, owned by local operator Next Step Healthcare. The Department of Labor (DOL) filed a complaint in federal court alleging that various nursing home organizations intentionally withheld overtime wages for at least 624 employees, and failed to maintain […]

DOL’s Final Rule on Worker Classification To Increase Legal Woes, Administrative Burdens for Nursing Homes

Many skilled nursing operators will need to reclassify their existing relationships with independent contractors and rethink future ones in the wake of a final rule issued by the Department of Labor (DOL) on Tuesday. The DOL’s new rule revises guidance on how to determine who is an employee and who is an independent contractor under […]

California Law Aims to Aid Appeals Process for Nursing Home Discharges

A new California law effective Wednesday will require nursing homes to offer residents copies of any information on their eviction, helping make appeals against the discharge easier to file. Evictions are one of the most common complaints reported to California’s Long Term Care Ombudsman programs, noted a report produced by CalMatters. In the past five […]

Comprehensive Healthcare Legal Saga Culminates in Acquittal of Individuals, Guilty Verdict for Corporate Defendants

Pennsylvania operator Comprehensive Healthcare Management Services was found guilty in a sprawling health care fraud case, following a five-week federal trial in Pennsylvania, involving two of its facilities. Brighton Rehabilitation and Wellness Center and Lebanon Rehabilitation and Wellness Center were found guilty of making false statements in connection with the payment of health care benefits […]

$56M Sale of 7 Comprehensive HC Properties May Proceed, As DOL Unable to Block Deal

The U.S. Department of Labor (DOL) failed to block a $56 million deal between Pennsylvania operator Comprehensive Healthcare Management Services and Kadima Healthcare Group for seven properties, according to court documents. The parties convened before the U.S. District Judge William Stickman IV in September when Acting Secretary of Labor Julie Su had asked for a […]

Comprehensive Healthcare Warns Company May Close Unless 7 Nursing Homes Are Sold, DOL Seeks Injunction

Comprehensive Healthcare may be forced to close unless the owners are allowed to sell seven nursing homes, according to a report on Wednesday from TribLive, the website of the Pittsburgh Tribune-Review. Comprehensive currently operates 15 facilities. The seven facilities involved in the sale have a combined 747 beds, according to the report. The U.S. Department […]