More than a dozen for-profit nursing home providers that have been accused of Medicare fraud, kickbacks, labor violations or failures in patient care received money from the federal government to help pay for shortfalls amid the coronavirus pandemic, The Washington Post reports.
According to an analysis conducted by the newspaper, nursing home companies who were sued for Medicare fraud or accused of other wrongdoing in recent years received more than $300 million in coronavirus relief aid.
The newspaper reports that the companies that received federal funds with “no strings attached” have settled cases with the Justice Department involving improper Medicare billing, forged documents, substandard care and other crimes.
Under their agreements, the nursing home operators repaid the government more than $260 million. Most of them are under active corporate integrity agreements with the inspector general of the U.S. Department of Health and Human Services. HHS distributed the relief payments. They are subject to audits, employee training and other reporting protocols under the agreements for five years.
One of the companies is still in active litigation with the government, according to records. SavaSeniorCare, which received $65 million in relief aid, is accused of putting elderly residents into unnecessary therapy services and delaying the release of patients to cash in on higher Medicare payments. SavaSeniorCare denies any wrongdoing, the newspaper reports.
One of the nursing homes that received funding was criticized for giving its more than 200 residents hydroxychloroquine. Another one, located in New Jersey, is under investigation by the state attorney general for lapses in infection control and patient care during a coronavirus outbreak earlier this year. Police found 17 bodies of residents in a makeshift morgue after someone placed an anonymous tip, the newspaper reports.
Federal data shows Brius, which operates dozens of nursing homes in California, received $35 million. According to WaPo, in 2016, officials at four Brius homes stated in federal court that employees used corporate credit cards to buy massages, tickets to sporting events and excursions on the 222-foot mega yacht Inspiration Hornblower for hospital planners who provided patient referrals.
Nursing homes are slated to receive $4.9 billion total out of a $175 billion Provider Relief Fund, which is sending money to hospitals, nursing homes and other health-care providers.
To track how the nursing homes are spending the money, which doesn’t have any strings attached, Rep. James E. Clyburn, D-S.C., who chairs the House select subcommittee on the coronavirus crisis, launched a congressional investigation in June, the newspaper reports.
“Our committee intends to conduct rigorous oversight to ensure that nursing home companies that received funds in order to deal with the crisis spend those funds as Congress intended,” he said in a statement to The Post. “Nursing home companies that received funds after committing fraud warrant particularly close scrutiny.”
According to HHS, providers who receive money will have to report spending and undergo audits. They could be forced to pay back funds not used for expenses or lost revenue.
“HHS will have significant anti-fraud monitoring of the funds distributed, and the Office of Inspector General will provide oversight as required in the CARES Act to ensure that federal dollars are used appropriately,” according to HHS.
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