By Angela Chen
Health-care real estate investment trust HCP Inc. said Tuesday
that the U.S. Department of Justice has filed a complaint against
its HCR ManorCare Inc. venture for alleged false claims related to
Medicare reimbursement.
A representative for the company wasn't immediately available
for comment.
The DOJ complaint, which was released from seal on Monday,
follows a civil investigation of lawsuits filed by former HCR
employees, according to a regulatory filing. In the previously
sealed lawsuits, the employees claimed, under a provision of the
federal False Claims Act, that HCR submitted claims to Medicare for
therapy services that were unskilled, unnecessary, not covered by
the skilling-nursing facility benefit and therefore not covered by
Medicare reimbursement.
The cases have now been consolidated in the U.S. District Court
for the Eastern District of Virginia.
HCR intends to "vigorously demand" the civil action, according
to the company.
Ohio-based HCR operates 283 nursing homes.
Write to Angela Chen at angela.chen@wsj.com
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