DOJ sues HCR Manorcare for alleged Medically Unnecessary Therapy
Fraud and Abuse in healthcare remains a hot issue, as evidenced by recent HEAT announcements. Following three qui tam (whistleblower) actions being filed, the Department of Justice announced it would intervene in the consolidated lawsuits. At issue was whether HCR Manorcare exerted pressure on SNF administrators and rehabilitation therapists to provide medically unnecessary and unreasonable services by administering additional treatments to qualify for the highest Medicare payments. Allegations also claimed HCR Manorcare kept patients in its facilities even though they were medically ready for discharge.