Skilled Nursing Facility To Pay $888,000 To Resolve Alleged False Claims Related To Materially Substandard Care

NEWARK, N.J. – A skilled nursing facility in Sussex County, New Jersey, has agreed to pay to the United States and the State of New York $888,000 to resolve allegations that it provided materially substandard or worthless nursing services to some patients, Acting U.S. Attorney William E. Fitzpatrick announced today.

Andover Subacute and Rehab Center Services Two Inc. (Andover) is a skilled nursing facility located in Andover, New Jersey. End of
Translation The settlement announced today follows an investigation by the U.S. Attorney’s Office for the District of New Jersey and the Commercial Litigation Branch of the Justice Department’s Civil Division, with assistance from the Office of the Attorney General of the State of New York.

The United States and The State of New York contend that from July 1, 2010, to Dec. 31, 2012, Andover billed New York Medicaid for materially substandard or worthless nursing services provided to certain patients that failed to meet federal standards of care and federal statutory and regulatory requirements.

To resolve the federal and state civil claims, Andover has agreed to pay $395,508 to the United States and $492,492 to the State of New York. Andover will enter into a Corporate Integrity Agreement with the Office of Inspector General of the DHHS to enhance quality assurance, accountability and other aspects of its compliance operations.

Acting U.S. Attorney Fitzpatrick credited special agents from the DHHS, Office of Inspector General, under the direction of Special Agent in Charge Scott J. Lampert, with the investigation leading to the settlement.

The government is represented by Assistant U.S. Attorney Charles Graybow of the Health Care and Government Fraud Unit of the U.S. Attorney’s Office for the District of New Jersey and Trial Attorney Brett Elliott of the Department of Justice’s Civil Division. The government was assisted by Special Assistant Attorney General Sally G. Blinken of the Office of the Attorney General of the State of New York. The Office of Inspector General and the Office of the General Counsel for the Centers for Medicare and Medicaid Services of the DHHS also participated in the investigation and settlement.

The U.S. Attorney’s Office for the District of New Jersey reorganized its health care practice in 2010 and created a stand-alone Health Care and Government Fraud Unit to handle both criminal and civil investigations and prosecutions of health care fraud offenses. Since that time, the office has recovered more than $1.33 billion in health care and government fraud settlements, judgments, fines, restitution and forfeiture under the False Claims Act, the Food, Drug and Cosmetic Act, and other statutes.

The claims settled by this agreement are allegations only; there have been no admissions of liability.

Defense counsel: Craig Goodstadt Esq., Andover, New Jersey