Brockway, Pa.-based Guardian Elder Care Holdings has agreed to pay over $15 million to settle allegations that it provided unnecessary rehabilitation to residents for its own financial gain, according to the Pittsburgh Post-Gazette.
The nursing home chain, which operates more than 50 facilities in Pennsylvania, settled allegations Feb 19 from a 2015 whistleblower suit. The suit accuses the chain of providing rehab for residents who didn't need or want it, such as dementia or hospice patients.
Whistleblowers Philippa Krauss and Julie White, both former Guardian employees, will share $2.8 million of the settlement. Both claim they had to do unnecessary rehab for some patients, and Medicare or Medicaid would pay for the treatment.
"Many Medicare Part A patients were subjected to rehabilitative therapy that was medically unreasonable, unnecessary, unskilled and possibly harmful," the suit said.
Guardian has agreed to pay $15.5 million and entered a "corporate integrity agreement" with HHS to ensure future compliance.
Resident care remains Guardian's first priority, according to a statement cited by the Pittsburgh Post-Gazette.