Kentucky’s share is $1,246,978
FRANKFORT, Ky. (Oct. 10, 2014) – Attorney General Jack Conway today announced that Kentucky has joined with seven other states and the federal government in reaching a $28 million settlement with Extendicare Health Services, Inc. and its subsidiary Progressive Step Corporation (ProStep).
Extendicare is a Delaware corporation that, through its subsidiaries, operates 146 skilled nursing facilities in 11 states. ProStep provides physical, speech and occupational rehabilitation services. The agreement settles allegations that between 2007 and 2013, in 33 of its skilled nursing homes in eight states, Extendicare billed Medicare and Medicaid for substandard skilled nursing services. The agreement also settles allegations that Extendicare failed to provide care to its residents that met federal and state standards of care and regulatory requirements. In addition to Kentucky, the states involved in this settlement include Indiana, Michigan, Minnesota, Ohio, Pennsylvania, Washington and Wisconsin.
The states and the federal government alleged that Extendicare failed to have a sufficient number of skilled nurses to adequately care for its skilled nursing residents, failed to provide adequate catheter care to some of the residents, and failed to follow the appropriate protocols to prevent pressure ulcers or falls
As a result of the settlement, the Medicaid program will receive approximately $14.6 million shared among the eight state and the Medicare program will receive $13.4 million. Kentucky’s share of the settlement is $1,246,978, of which the federal government will receive $905,587.
Extendicare and ProStep are also required to enter into a five-year chain-wide Corporate Integrity Agreement with the Office of Inspector General (OIG) for the U.S. Department of Health and Human Services.