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Lancaster Healthcare Center Agreed to Pay $8.6 Million for Allegedly Violating the Civil Monetary Penalties Law by Submitting Claims for Therapy Services without Certifications and Paying Remuneration for Referrals under a Medical Director Agreement

After it self-disclosed conduct to OIG, Five Star Quality Care-CA LLC d/b/a Lancaster Healthcare Center (Lancaster), California, agreed to pay $8,601,795 for allegedly violating the Civil Monetary Penalties Law including provisions applicable to physician self-referrals and kickbacks. OIG alleged that Lancaster submitted claims for skilled nursing services without proper certifications and recertifications for services, establishment and content of therapy plans, and/or maintenance of clinical records. OIG also alleged that Lancaster paid remuneration to a physician for referrals pursuant to a medical director agreement.

Action Details

  • Date:June 24, 2016
  • Enforcement Types:
    • Fraud Self-Disclosures