Nursing home signs $30M settlement to resolve fraud lawsuit

Friday, June 8, 2018, Vol. 42, No. 23

NASHVILLE (AP) — A Tennessee nursing home has signed a $30 million settlement to resolve a Medicare fraud lawsuit filed by two whistleblowers.

One whistleblower, Kristi Emerson, tells The Tennessean she worked at Signature Healthcare of Columbia for more than a decade. She says by 2015, pressure from corporate managers was intolerable and included demands that hours of therapy be performed daily even if it was not necessary for a patient.

The lawsuit was unsealed Monday by a federal judge in Nashville. It accused the nursing home of artificially inflating therapy time to maximize profits.

Prosecutors say in the $30 million settlement that the total fraud was roughly $244 million. Signature did not admit wrongdoing in the settlement agreement.

The Louisville, Kentucky-based company operates 115 nursing home facilities across half the country, including seven in Tennessee.