Indianapolis-based American Senior Communities, which operates several nursing homes in Indiana, has agreed to pay $5.6 million to settle allegations over false Medicare claims, the Justice Department announced Aug. 10.
The company, owned by Indianapolis-based Health and Hospital Corp. of Marion County, was hit with a whistleblower lawsuit initiated in 2017 by Joseph Lingenfelter, a healthcare executive of a hospice care facility that had a contract with American Senior Communities.
The alleged fraud amounted to $2.7 million in lost Medicare funds, according to the Justice Department.
"ASC is pleased to resolve this legacy matter relating to conduct that was alleged to have initiated under its prior management team," Sherri Davies, American Senior Communities vice president of marketing, told the Indianapolis Star on Aug. 10.
Ms. Davies added that the organization is taking steps to ensure errors such as those alleged in the suit do not recur.
American Senior Communities denies liability for the allegations. The Justice Department said no patients were harmed due to the alleged conduct.