The Louisville, Kentucky, Courier-Journal reported on February 13, 2007 that the U.S. Dept. of justice will intervene in a whistle-blower suit against HealthEssentials.
The Louisville company filed for bankruptcy in 2005. The government charges that it systematically overbilled Medicare for the geriatric care and related services it provided at nursing and assisted-living facilities, retirement communities and in patients’ homes. The whistle-blower suit accuses HealthEssentials of billing Medicare for services that were not done, billing nurse-practitioner rates for services actually done by lesser-trained medical assistants and committing other infractions.
Although HealthEssentials has no significant assets, the government could seek to recover the $120 million it alleges is owed from former officers or others connected with the company.