A once prominent Kentucky healthcare company has agreed to pay a $16 million dollar civil judgment against them over federal fraud allegations.
Nurses’ Registry, which provides therapy and other home health services for close to 1,350 patients and once ran ads featuring UK basketball coach John Calipari, will soon be sold off with 70 percent of the net proceeds heading to the federal government. Medicare officials had accused the company of widespread fraudulent billings and kickbacks, including the promise of game tickets to doctors in exchange for referrals.
"The taxpayers will recover a significant amount of money that they were defrauded out of and Nurses' registry will no longer be in business to engage in further fraudulent conduct," says U.S. Attorney for the Eastern District of Kentucky Kerry Harvey.
The estate of the late owner of Nurses Registry, Lennie House, will also hit the auction block with the lion’s share of the sale price reimbursing Medicare. But even then, the federal government can expect to eat a large portion of the costs.
"There have been some intervening factors, such as Nurses' Registry filing for bankruptcy protection a few months ago, claiming it was insolvent," Harvey says, adding that he feels the settlement represents the best deal possible at this time.
Federal officials estimate Nurses’ Registry racked up more than $30 million in improper billing while kickbacks tainted another $4.8 million in payments.