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DES MOINES, Iowa (AP) — A Des Moines-based company that manages nursing homes across the country has agreed to pay part of a $3.8 million settlement for what federal officials say was overbilling of Medicare.
Life Care Services, of Des Moines, and a California nursing home company called ParkVista have agreed to pay the settlement, but have not admitted wrongdoing, The Des Moines Register reported (http://dmreg.co/1wczh23 ) Saturday.
Federal officials said in a news release that the companies were involved in an arrangement under which a therapy company provided "unreasonable and unnecessary" rehabilitation therapy services to nursing home residents in California and Massachusetts. Officials said the arrangement led to inflated reimbursements from Medicare, which is the federal insurance program for the elderly and disabled.
"Patients in skilled nursing facilities and the patients' families should be able to have confidence that the facilities are not allowing therapy companies to manipulate the amount of therapy being provided based on financial motives," U.S. Attorney Carmen Ortiz of Massachusetts said in the press release.
Life Care Services released a statement Friday saying it disputed the government's allegations, but "opted to settle to avoid the cost and uncertainty of protracted litigation."
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Information from: The Des Moines Register, http://www.desmoinesregister.com
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