Regency Nursing and Rehabilitation Centers Will Pay $4 Million for Submitting False Claims

June 4, 2009 

The Department of Justice released the settlement of a False Claims Act on Thursday, May 21, involving the Texas-based nursing home chain, Regency Nursing and Rehabilitation Center Inc. The company will pay $4 million to the United States to settle allegations that it submitted false claims to Medicaid and the Texas Medicaid program.  

According to the case, Regency sought Medicare and Medicaid reimbursement for services that nursing home residents did not qualify for, were unnecessary, and were unsupported by required certification. 

“With the number of Medicare and Medicaid beneficiaries increasing every year, we will take whatever action is necessary to make certain healthcare providers are reimbursed only for legitimate services provided to qualified beneficiaries,” said Tim Johnson, Acting U.S. Attorney for the Southern District of Texas.

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