A Los Angeles-based company that runs 27 nursing homes has agreed to pay $16.7 million to settle allegations of Medicare fraud.
The U.S. attorney’s office announced the settlement Monday, although Longwood Management Corp. signed it several months ago.
Two lawsuits alleged that the company pressured rehabilitation therapists to increase the amount of therapy provided to patients when it wasn’t necessary in order to bump up Medicare reimbursements.
Longwood didn’t acknowledge any wrongdoing but it did agree to undergo an independent corporate integrity review annually for five years.
The settlement covers conduct that occurred from 2006 through 2014 at several different facilities, including: Alameda Care Center in Burbank, Montrose Healthcare Center, Sherman Oaks Health & Rehab Center, Longwood Manor Convalescent Hospital in the Mid-City, View Park Convalescent Center in Baldwin Hills and Sunnyview Care Center in Pico Union.
A call to the company seeking comment wasn’t immediately returned.
