Nursing Home Chain Pays $20M To Avoid Court

Law360, New York (August 21, 2006, 12:00 AM EDT) -- Beverly Enterprises Inc. has agreed to pay $20 million to avoid going to court to face allegations by the Department of Justice that one of the nursing home company’s former subsidiaries improperly charged state and federal programs for medical equipment.

MK Medical—a medical equipment wholesaler that’s now out of business—violated the False Claims Act by submitting requests for payment without properly documenting the claims, according to the Department of Justice.

MK Medical’s claims were submitted to both Medicare and Medi-Cal—a state-run program in California.

The proceeds...
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