In a major blow to a San Gabriel Valley-based nursing home chain, officials from ReNew Health Group LLC and its top brass have agreed to cough up over $7 million in a hefty settlement following allegations of bilking Medicare through false claims during the COVID-19 pandemic, the Department of Justice announced.
The settlement, which totals $7,084,000, resolves accusations that ReNew Health Group LLC, along with ReNew Health Consulting Services LLC and two corporate executives, engaged in knowingly submitting claims for nursing home care that was not necessary, falsely stating that residents had COVID-19 or other acute conditions when in fact, they were not diagnosed with such diseases, the authorities alleged they just had been exposed to others with the virus but still, they sent the bills anyway.
"False claims are anathema to the Medicare system, especially during a public health crisis," stated United States Attorney Martin Estrada of the Central District of California, emphasizing the commitment of his office to weed out fraudulent activities draining vital healthcare funds.
The substantial payout is divided between the United States which will receive a lion's share of $6,841,727, and the State of California which is set to get $242,273, these figures come alongside the sting of interest that ReNew Health will also be serving up, as part of their mea culpa; it's a move that greatly underscores the Justice Department's pledge to protect taxpayer dollars from being taken advantage of, particularly in times of an emergency like the pandemic, according to Principal Deputy Assistant Attorney General Brian M. Boynton, who leads the Department of Justice's Civil Division he made it clear, "We will hold accountable those who sought to defraud such programs during the COVID-19 pandemic, including those who knowingly misused emergency waivers for personal gain."
The case, originally sparked by a whistleblower suit filed by Bay Area Whistleblower Partners, utilized the False Claims Act to bring the allegations to light; for their part in shining the spotlight, they are set to receive a $1,204,280 cut from the settlement, plus a little extra for interest, as per the details laid out in the case titled United States and State of California ex rel. Bay Area Whistleblower Partners v. ReNew Health Group LLC et al., No. 2:20-cv-09472 (C.D. Cal.).
While the settlement has been reached, it's worth noting the accusations were just that—allegations; neither ReNew Health nor the executives have been found legally liable in the case, despite the hefty price tag of their settlement. Officials from both the Department of Health and Human Services Office of Inspector General and the California Department of Justice's Division of Medi-Cal Fraud and Elder Abuse had a hand in the case management, which was overseen by Assistant United States Attorney Karen Y. Paik alongside Senior Trial Counsel Albert P. Mayer.
