On June 16, 2017, Genesis Healthcare, Inc. agreed to pay the Justice Department $53.6 million to resolve six lawsuits and a federal investigation concerning potential False Claims Act violations in more than four states.  The lawsuits centered on conduct by Sun Healthcare Group, Inc., which Genesis purchased in 2012, and Skilled Healthcare Group, Inc. which merged with Genesis in 2015.  Former employees of Sun Healthcare and Skilled Healthcare had brought suits against the Genesis-acquired entities under the qui tam provisions of the False Claims Act, and the United States intervened.  Though the suits implicated different healthcare facilities, they all alleged that the Genesis-acquired entities billed Medicaid and Medicare for unneeded or inappropriate services. The seven whistleblowers will receive a combined $9.67 million.  Genesis did not admit liability in the settlement agreement.  United States ex rel. West v. Skilled Healthcare Group Inc., 11-02658-ED (N.D. Cal.); United States ex rel. Cretney-Tsosie v. Creekside Hospice II, LLC, 2:13-cv-167-HDM (D. Nev.); United States ex rel. McAree v. SunDance Rehabilitation Corp., 1:12-CV-4244 (N.D. Ga.); United States ex rel. Deaton v. Skilled Healthcare Group, Inc., Civ. 4:14-cv-00219 (W.D. Mo.); United States ex rel. Wilson v. Skilled Healthcare Group, Inc., Civ. 14-cv-860 (W.D. Mo.).

DOJ Press Release