Kennett Square’s Genesis Healthcare has agreed to pay $52.7 million to resolve various allegations brought against the company by the Department of Justice, according to a staff report from Daily Local News.
The allegations claimed that the long-term care facilities operator violated Medicare rules for physical therapy at two of its subsidiaries, improperly billed the government for services provided in its Nevada hospice and had inadequate staffing at some facilities from 2005 to 2013.
According to the company, the agreement was reached last week. As a result, Genesis will record an additional loss contingency expense in the second quarter of this year.
“Based on the agreement in principle and in anticipation of the execution of final agreements and payment of a settlement amount of $52.7 million, the company will record an additional loss contingency expense in the amount of $13.6 million in the second quarter of 2016, to increase its previously estimated and recorded liability,” said the company in a statement.
Genesis also announced it will be refinancing its term loan facility and has entered into a series of amendments to its major loan and lease agreements. The net proceeds of the new term loan, as well as cash on hand, will be used to repay an obligation of $156.5 million.
Read more about the settlement at Daily Local News here, and check out previous VISTA Today coverage of Genesis Healthcare here.
