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ALIQUIPPA, Pa. — The federal government has paid billions of dollars in stimulus funds to hospitals and nursing homes.
Action News Investigates has learned some of the entities receiving stimulus money have been accused of cheating the government.
Brockway-based Guardian Elder Care owns 31 nursing homes in the tri-state area that received a total of $5.8 million in stimulus funds.
But in February, just weeks before the pandemic hit, Guardian agreed to pay the federal government $15.4 million to settle False Claims Act allegations that they billed Medicare for unnecessary services.
“Billing federal healthcare programs for medically unnecessary rehabilitation services not only depletes these programs’ funds but also exploits our most vulnerable citizens,” U.S. Attorney Scott Brady said in a release announcing the settlement.
But that did not keep Guardian from receiving stimulus funds after the pandemic hit.
The watchdog group Good Jobs First is tracking stimulus spending.
"False Claims Act cases involve cheating the federal government. So here you're giving more money to companies that have been cheating the government," said Phil Mattera, research director of Good Jobs First.
In a statement, parent company Guardian Healthcare said: "The safety of our residents and caregivers is, and has always been, our top priority. All financial settlement obligations were satisfied prior to the declaration of a national emergency caused by the COVID-19 pandemic. The focus for all of us at Guardian remains on caring for our patients and residents during this unprecedented time."
Good Jobs First found 200 companies accused of improprieties have received stimulus funds.
"We're not saying they should be denied this aid. We're not saying blacklist them. We are saying to make sure the aid is used properly," Mattera said.
He said he hopes a federal government oversight panel keeps close watch over spending by companies that have been accused of cheating the government.
More information about organizations receiving stimulus funds can be found here:
https://covidstimuluswatch.org/
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Nursing home company received millions in stimulus funds after settling false billing allegations
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