SavaSeniorCare LLC Agrees to Pay $11.2 Million to Resolve False Claims Act Allegations

Angie Szumlinski Announcements

SavaSeniorCare LLC and related entities (Sava), based in Georgia, have agreed to pay $11.2 million, plus additional amounts if certain financial contingencies occur, to resolve allegations that Sava violated the False Claims Act by causing its skilled nursing facilities (SNFs) to bill the Medicare program for rehabilitation therapy services that were not reasonable, necessary or skilled, and to resolve allegations that Sava billed the Medicare and Medicaid programs for grossly substandard skilled nursing services. Sava currently owns and operates SNFs across the country.

This settlement also resolves allegations that between October 2008 and September 2012, Sava knowingly submitted false claims to Medicaid for coinsurance amounts for rehabilitation therapy services for beneficiaries eligible for both Medicare and Medicaid and for whom Sava also allegedly submitted or caused the submission of false claims to Medicare for those services.

In addition, this settlement resolves allegations that between January 2008 and December 2018, Sava knowingly submitted false claims for payment to Medicare and Medicaid for grossly and materially substandard and/or worthless skilled nursing services. The government alleged that some of the nursing services provided by Sava failed to meet federal standards of care and federal statutory and regulatory requirements, including failing to have sufficient staffing in certain facilities to meet certain residents’ needs. The government also alleged that in certain skilled nursing facilities, Sava failed to follow appropriate pressure ulcer protocols and appropriate falls protocols, and failed to appropriately administer medications to some of the residents. 

Under the settlement with the United States, and separate settlements with participating states, Sava has agreed to pay a total of approximately $11.2 million, plus additional amounts if certain financial contingencies occur. The settlement was based on the company’s ability to pay.

In connection with the settlement, Sava entered into a five-year chain-wide Corporate Integrity Agreement (CIA) with HHS-OIG that requires an independent review organization to annually review patient stays and associated paid claims by Medicare for those stays. In addition, Sava is required to engage an Independent Monitor to review the quality of resident care. CIAs promote compliance and protect vulnerable nursing home residents.

You can read the Department of Justice Release in full by following this link:

https://www.justice.gov/opa/pr/savaseniorcare-llc-agrees-pay-112-million-resolve-false-claims-act-allegations