Nursing home, federal government settle lawsuit

Tuesday February 26, 2013 11:30 AM

ERLANGER, Ky. (AP) — A settlement has been reached in a lawsuit over patient care at a northern Kentucky nursing home.

The Kentucky Enquirer (http://bit.ly/YvQFhd) reports the agreement requires Villaspring Health Care Center and its parent company, Carespring Health Care Management, to pay the federal government $350,000 and report its progress on improving patient care for three years.

The federal government sued the institutions in 2011 claiming the nursing home provided "services that were worthless."

Federal prosecutors say it was the first lawsuit in the state that accused a nursing home of violating the False Claims Act by allegedly defrauding Medicaid and Medicare for reimbursement for poor care.

Villaspring and Carespring still dispute the allegations in the lawsuit. A statement says the companies determined it was in their best interest to settle and move on.

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Information from: The Kentucky Enquirer, http://www.nky.com

©2013 by The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
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