Nursing Home Operator to Pay $11 Million To Resolve Fraud Claims by McKinney Law Firm Client and Others

One of the largest nursing home chains in the U.S., SavaSeniorCare has agreed to settle whistleblower claims alleging the company fraudulently overcharged Medicare for medically unnecessary rehabilitation therapy and substandard skilled nursing services.

Multiple whistleblowers, also known as relators, filed the initial case against Sava in 2011, alleging Sava violated the False Claims Act. One of the whistleblowers was Mr. Terrence Scott, who was represented by Chris McKinney, along with co-counsel Charles Siegel and Caitlyn Silhan of Waters & Kraus in Dallas, Texas, and Dan Hargrove of San Antonio, Texas, and local counsel Dave Garrison of Barrett, Johnston, Martin, & Garrison in Nashville, Tennessee.

The federal government intervened in the case in 2015, joining the lawsuit against the nursing home chain. Pursuant to the settlement agreement, SavaSeniorCare LLC (Sava) and related entities, agreed to pay $11.2 million to resolve the case alleging the company knowingly billed Medicare and Medicaid for excessive and unnecessary amounts of rehabilitation therapy and “grossly substandard” skilled nursing services. The U.S. Department of Justice announced the settlement on May 21, 2021.

Our client, Terrence Scott, refused to engage in the fraudulent conduct alleged in his and the government’s complaint. His standing up to this corporate behemoth and having the determination to stay with the fight for years helped hold Sava accountable.

As a part of the settlement, Sava entered into a Corporate Integrity Agreement with HHS-OIG, which mandates an annual independent review of patient stays and associated paid claims by Medicare for five years. Sava is also required to have independent monitoring of its residents’ quality of care.

The civil settlement resolves claims brought under the qui tam, or whistleblower, provisions of the False Claims Act. Under the qui tam provisions of the False Claims Act, a private party can file a lawsuit on behalf of the U.S. government and receive a portion of any recovery, as the whistleblowers did here.