(The Center Square) – California is receiving a $3.8 million settlement with Riverside skilled nursing facility, Alta Vista Healthcare & Wellness Centre (Alta Vista), and its management company, Rockport Healthcare Services (Rockport), resolving an issue of alleged Medi-Cal fraud.
The defendants are accused of violating a federal law known as the Anti-Kickback Statute and False Claims Act, in addition to the California False Claims Act. The defendants allegedly paid illegal kickbacks to doctors, incentivizing them to refer Medicaid and Medi-Cal patients to Alta Vista, according to a press release from California Attorney General Rob Bonta’s office.
The United States will get $2.8 million as a part of the settlement, and California will receive $596,700.
“Decisions that affect patient health should be made solely on the basis of a patient’s best interest,” Attorney General Bonta said in the release. “When a healthcare company cheats and offers kickbacks to gain an unfair advantage, it jeopardizes the health and well-being of those who rely on its services. These illegal schemes also make public services and programs costlier and ultimately waste valuable taxpayer dollars. Today, I thank the U.S. Department of Justice for teaming up with the California Department of Justice on this case. This settlement demonstrates our commitment to protecting the integrity of Medi-Cal and the taxpayer dollars that support the program.”
Principal Deputy Assistant Attorney General Brian M. Boynton, head of the U.S. Justice Department’s Civil Division said that kickbacks can impair decision-making and lead to fiscal irresponsibility.
“Kickbacks can impair the independence of physician decision-making and waste taxpayer dollars,” Boynton said in the release. “The Department is committed to preventing illegal financial relationships that undermine the integrity of our public healthcare programs.”
The settlement comes after an investigation by the California Department of Justice’s Division of Medi-Cal Fraud and Elder Abuse, the United States Attorney’s Office for the Central District of California, and the U.S. Department of Justice. Investigators uncovered evidence of illegal kickbacks between January 2009 through December 2019. These kickbacks came in the form of cash, gifts, and salaries.
“Inducing or rewarding doctors to steer or refer Medi-Cal and Medicare patients is unlawful under both California and federal law because it can lead to over-utilization of publicly-funded health care services, increased costs for public programs, corruption in medical decision-making, and unfair competition,” Bonta’s office said.
The settlement agreement can be read here.
