Federal investigation finds three local nursing homes lacking

WASHINGTON — Three central Ohio nursing homes were among 33 in 11 states cited for improper care and billing practices yesterday as part of a $38 million settlement among a major nursing-home company, the U.S. Department of Justice and the state of Ohio.

The announcement in Washington and Columbus resolved an investigation by the federal government, Ohio and seven other states into charges that Extendicare of Canada provided services at those 33 homes that were “materially substandard” or “worthless” because the company did not provide care to residents that meets federal standards, according to the settlement agreement.

The settlement asserts that Extendicare submitted false claims to Medicare between 2007 and last year, charging that the company demanded payment for “medically unreasonable and unnecessary rehabilitation-therapy services” for clients in the 33 homes.

The Columbus Rehabilitation and Subacute Institute in Franklinton, the Arbors East Subacute and Rehabilitation Center on the East Side and the Arbors at London in Madison County were among six Ohio homes cited in the agreement.

At a news conference in Washington, Acting Assistant Attorney General Joyce Branda said, “These problems stemmed in large part from Extendicare’s business model — a model that was driven more by profit and less by the quality of the care it provided.

“Extendicare employed fewer skilled nurses than were needed to care for the very sick residents in those facilities and failed to properly train and supervise the staff it did have.”

Ohio Attorney General Mike DeWine said, “Not only will the states and federal government be reimbursed for the millions that we believe was paid for inadequate care, but we will also make sure that residents living in every Extendicare skilled nursing facility across the country receive the quality care that they depend on and deserve.”

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Federal investigation finds three local nursing homes lacking