Lawyers and other leaders in the nursing home sector believe the American Health Care Association’s (AHCA) lawsuit is strong, framed well and likely to succeed, with a decision possible by early 2025. An injunction from the plaintiffs – all 5-Star facilities located in Texas along with AHCA – regarding staffing rule’s implementation should follow in […]
Category: Litigation
The American Health Care Association (AHCA) filed a lawsuit late Thursday against the U.S. Department of Health and Human Services (HHS) and the Centers for Medicare and Medicaid Services (CMS) for exceeding their statutory authority and “arbitrarily and capriciously issuing” a final minimum staffing rule. The lawsuit asks the court to issue an order and […]
LeadingAge joins a slew of other nursing home industry voices in urging a multi-faceted strategy following the finalization of the federal minimum staffing rule a month ago. The advocacy group is pursuing legislative, legal and regulatory avenues to stop the mandate and build the workforce. Katie Smith Sloan, president and CEO of LeadingAge, said, “We […]
In a recent move to increase transparency in the nursing home industry, one state attorney is taking on operating giant The Ensign Group (Nasdaq: ENSG), with plans to invalidate secret arbitration and block any similar agreements in the future. Kris Mayes, Arizona Attorney General, is seeking to intervene in a lawsuit involving Sun West Choice […]
A recent lawsuit filed in federal court accuses the Maryland Department of Health (MDH) of failing to adequately inspect and investigate complaints in the state’s nursing facilities, leading to significant instances of abuse and neglect. The lawsuit, representing five anonymous residents with mobility impairments and complex health needs, claims MDH’s inaction disproportionately harms residents with […]
More nursing homes owned by Centers Health Care are being investigated for alleged Medicaid fraud, while also having been plagued with serious safety concerns. The 240-bed Hammonton Center and Deptford Center for Rehabilitation and Healthcare in New Jersey, join other facilities owned by Centers Health that are under investigation, according to a report from the […]
ReNew Health, a California-based nursing home chain, has settled a Medicare fraud lawsuit for $7 million tied to pandemic-era waivers, according to recently unsealed court filings. The lawsuit claims that ReNew falsely billed Medicare for skilled nursing stays using the 3-day hospital waivers issued by the Centers for Medicare & Medicaid Services (CMS). The Department […]
If there’s no additional funding for the minimum staffing rule, well over 5% of existing facilities will close, depending on how successfully operators can pivot to meet the standard. The rates of closure may even reach 10% to 15%, depending on the market, cautioned sector leaders attending the LTC100 conference this week. Steve Nee, CEO […]
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 […]
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 […]
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 […]
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, […]
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. […]
As a “chunk” of the nursing home sector teeters on the brink, the political will of the White House and the unions to implement the federal staffing mandate appears to be at odds with its practicality, affording the industry a chance to challenge it both legislatively and legally. This view was expressed by Ensign CEO […]
States are seeing in real time what a federal minimum staffing mandate may cost them, as a disagreement between Connecticut and its nursing homes has come to a head. The state owes its nursing homes $55 million for staffing requirements imposed between March 2023 and this past January when an enhanced version of the directive […]
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 […]
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 […]
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 […]
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 […]
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 […]


