Signature HealthCARE (Signature), a Kentucky-based owner and operator of 115 skilled nursing facilities across ten states, has reached an agreement with the HHS OIG to settle a False Claims Act lawsuit in which it was accused of knowingly submitting fraudulent Medicare and Medicaid claims for unnecessary rehabilitation services totaling $244 million by automatically placing patients in the highest reimbursement level for therapy services without conducting individual evaluations, among other allegations. Signature did not admit to any wrongdoing as part of the settlement.

The lawsuit, sparked by two former employee whistleblowers, also alleged that Signature provided therapy for the minimum amount of time required to bill at a given reimbursement level while discouraging the provision of additional care beyond that threshold, and pressured therapists and patients to complete planned sessions even when patients were gravely ill or declined to participate.

Signature was also accused of submitting forged pre-admission certifications of patient need for skilled nursing to Tennessee’s Medicaid program. As part of the resolution, Tennessee will receive a portion of the settlement, as will the two whistleblowers.

Click here to read the full DOJ press release.