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Erlanger Nursing Home and United States Government Settle Civil Allegations

Monday, 02 25, 2013

Kyle Edelen
(859) 685-4811
Kyle.Edelen@usdoj.gov

Under a settlement agreement with the U.S. Government, Villaspring Health Care Center, Inc., and Carespring Health Care Management, LLC are further enhancing the care that they provide to residents of Villaspring's nursing home in Erlanger, Ky., announced United States Attorney Kerry Harvey.

The agreement: (1) embodies and effectuates quality of care enhancements at Villaspring, and (2) ensures that the U.S. Attorney's Office remains apprised of those enhancements over the next three years. The settlement agreement is the first of its kind in Kentucky and resolves False Claims Act allegations brought against Villaspring and Carespring in a lawsuit filed in July 2011 for conduct alleged to have occurred between 2004 and 2008.

Under the agreement, Villaspring and Carespring will pay the U.S. Government $350,000. Villaspring and Carespring will also retain an independent compliance consultant, subject to the approval of the U.S. Attorney's Office (USAO). The consultant will review Villaspring's existing compliance program and its quality of care, and collaborate with Villaspring and Carespring on enhancements to the program and its patient care. Villaspring and Carespring will be responsible for the costs of these enhancements and the costs of the consultant.

Pursuant to the agreement, the consultant will provide quarterly reports to the U.S. Attorney's Office,Villaspring, and Carespring.

"We are pleased to reach an agreement," said United States Attorney for the Eastern District of Kentucky Kerry B. Harvey. "The focus of the agreement is ensuring that quality of care standards are met and the consultant provisions of the settlement will provide real benefits to Villaspring residents. The Judge's ruling in this matter establishes that the failure of care theory will be an important tool available for use in appropriate cases."

The case was handled by Assistant United States Attorneys Andrew Sparks and Paul McCaffrey, and Department of Health and Human Services Office of Inspector General attorney Jill Wright. The matter was referred to the U.S. Attorney's Office by Kentucky Attorney General Jack Conway following an investigation by his Office of Medicaid Fraud and Abuse Control.