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Nursing home whistleblower will get $1.125 million in settlement

On Behalf of | Oct 6, 2021 | Uncategorized

Whistleblowers are a hot topic in the news with the recent revelations about how Facebook does business. In Florida and across the United States, it might seem stunning when insiders report apparent wrongdoing by their employer. However, it happens quite frequently without the rampant attention the Facebook case is getting. These cases frequently center around corporate misbehavior. The health care industry is a common environment for various forms of malfeasance. For people who believe their employer is violating the law, a whistleblower claim is an option to explore.

Nurse filed whistleblower claim alleging financial impropriety

One recent whistleblower case centers around a company that runs nursing homes reaching a settlement with the justice department and a nurse who gave information about what she witnessed. It was first reported to the justice department in 2011. The nurse who reported the infractions had worked at two facilities under the corporate umbrella. She found that the facilities were overcharging Medicare and Medicaid for therapy given to residents.

This case wound through the courts due to legal wrangling and a corporate bankruptcy. Six nursing homes owned by the corporation are filing for Chapter 11. With that, they will avoid paying the judgment of just shy of $348 million. Instead, the justice department will receive $3.375 million and the whistleblower $1.125 million.

Financial misdeeds are common in the health care industry

Whistleblower litigation can be complicated, but those who see illegal activities have the right and the duty to report it. Because many people who need skilled nursing care in a facility have their payments supplemented or covered outright by government plans like Medicare and Medicaid, the system is rife with reports of fraud. Companies use a lack of oversight to overcharge and commit other acts that violate the law. Whistleblowers who spot this type of behavior can file a case to report the information and could be compensated for it. Given the complexity of these cases, it is imperative to have experienced legal advice on how to proceed.