Date: June 21, 2023
USA Today, and other publications, reported on the $3.8 million settlement paid by California-based Alta Vista Healthcare & Wellness Centre, LLC, and its management company Rockport Healthcare Services. The companies — a part of a larger network associated with one of California's biggest nursing home owners Shlomo Rechnitz — agreed to pay the United States and California in order to resolve allegations that they committed Medicare and Medicaid fraud. Neyirys Orozco, a former employee and the whistleblower who filed the case, will receive a portion of the settlement. Ms. Orozco is represented by TELG principal Janel Quinn.
[EXCERPT]
California nursing facility agrees to pay $3.8 million for alleged kickbacks to doctors
A Riverside, California skilled nursing facility and its management healthcare services company agreed to pay California and the US $3.825 million to resolve allegations that they paid kickbacks to physicians to induce referrals, the U.S. Department of Justice announced Wednesday.
The companies will pay $3,228,300 to the federal government and $596,700 to California.
Between 2009 and 2019, Alta Vista Healthcare & Wellness Centre, LLC allegedly gave physicians “extravagant gifts, including expensive dinners for the physicians and their spouses, golf trips, limousine rides, massages, e-reader tablets, and gift cards worth up to $1,000” under the direction of Rockport Healthcare Services, a news release from the Justice Department says. The groups “submitted and caused the submission of false claims to Medicare and Medicaid,” prosecutors said.
“Separately, Alta Vista paid these physicians monthly stipends of $2,500 to $4,000, purportedly for their services as medical directors. At least one purpose of these gifts and payments was to induce these physicians to refer patients to Alta Vista,” according to the U.S. Attorney’s Office
The settlement came as a result of a whistleblower complaint. A former Alta Vista accounting employee, Neyirys Orozco, in 2015 filed the complaint and will receive $581,094 “as her share of the federal government’s recovery in this case,” the Justice Department said.
» View full story on USA Today
[OFFICIAL ANNOUNCEMENTS]
California Skilled Nursing Facility and Management Company Agree to Pay $3.825 Million to Settle Allegations of Kickbacks to Referring Physicians
From the U.S. Department of Justice (June 21, 2023)
Alta Vista Healthcare & Wellness Centre, LLC (Alta Vista), a skilled nursing facility in Riverside, California, and its management company, Rockport Healthcare Services (Rockport), have agreed to pay the United States and California a total of $3.825 million to resolve allegations that they submitted and caused the submission of false claims to Medicare and Medicaid by paying kickbacks to physicians to induce patient referrals. The settlement amount was negotiated based on Alta Vista’s and Rockport’s lack of ability to pay.
The Anti‑Kickback Statute prohibits offering or paying remuneration to induce the referral of items or services covered by Medicare, Medicaid, and other federally funded programs. It is intended to ensure that medical decision-making is not compromised by improper financial incentives and is instead based on the best interests of the patient.
» View press release on Justice.gov
Attorney General Bonta Announces $3.8 Million Settlement Against Riverside Nursing Facility Accused of Paying Illegal Kickbacks to Doctors
From the State of California Department of Justice (June 21, 2023)
OAKLAND — California Attorney General Rob Bonta, in partnership with the U.S. Department of Justice, today announced a $3.8 million settlement with a Riverside skilled nursing facility, Alta Vista Healthcare & Wellness Centre (Alta Vista), and its management company, Rockport Healthcare Services (Rockport), to resolve allegations of Medi-Cal fraud. The defendants are accused of violating the federal Anti-Kickback Statute and False Claims Act, as well as the California False Claims Act, by paying illegal kickbacks to doctors to encourage them to refer Medicaid and Medi-Cal patients to Alta Vista. As part of this settlement, the United States will receive $2.8 million and California will receive $596,700, based on the proportion of losses to state and federal funds.
“Decisions that affect patient health should be made solely on the basis of a patient’s best interest,” said Attorney General Bonta. “When a healthcare company cheats and offers kickbacks to gain an unfair advantage, it jeopardizes the health and well-being of those who rely on its services. These illegal schemes also make public services and programs costlier, and ultimately waste valuable taxpayer dollars. Today, I thank the U.S. Department of Justice for teaming up with the California Department of Justice on this case. This settlement demonstrates our commitment to protecting the integrity of Medi-Cal, and the taxpayer dollars that support the program.”
» View press release on OAG.CA.gov
[ADDITIONAL COVERAGE]
California Nursing Facility Settles Physician Kickback Claims
From Bloomberg Law (June 21, 2023)
Alta Vista Healthcare & Wellness Centre LLC, and Rockport Healthcare Services have agreed to pay the United States and California $3.8 million to resolve false claim allegations involving Medicare and Medicaid, according to a Wednesday news release.
» View full story on Bloomberg Law
Rockport Healthcare Services To Pay $3.8 Million For Allegedly Bribing Doctors To Secure Nursing Home Patients
From The Washington Gazette (June 21, 2023)
RIVERSIDE, Ca — Alta Vista Healthcare & Wellness Centre, LLC (Alta Vista) and its management company, Rockport Healthcare Services (Rockport), have agreed to pay a settlement of $3.825 million to the United States and California. The allegations against them are that they submitted false claims to Medicare and Medicaid by paying kickbacks to physicians to induce patient referrals. The negotiated settlement amount took into account the financial capacity of Alta Vista and Rockport.
» View full story on The Washington Gazette
RivCo Skilled Nursing Facility Paid Kickbacks To Local Doctors: CA OAG
From Patch (June 21, 2023)
RIVERSIDE, CA — A $3.8 million settlement agreement has been reached over allegations that a Riverside County skilled nursing facility paid illegal kickbacks to doctors as part of a fraud scheme, state officials announced Wednesday.
Alta Vista Healthcare & Wellness Centre on Garfield Street in Riverside, along with its management company, Los Angeles-based Rockport Healthcare Services, are accused of violating the federal Anti-Kickback Statute and False Claims Act, as well as the California False Claims Act, by paying illegal kickbacks to doctors for referrals of Medicaid and Medi-Cal patients to Alta Vista.
State and federal investigators found evidence that from January 2009 through December 2019, Rockport and Alta Vista paid the kickbacks — in the form of cash, gifts and salaries — to certain Riverside-area doctors. The referrals resulted in millions of dollars in Medicare and Medi-Cal reimbursement to Alta Vista and Rockport, according to California Attorney General Rob Bonta who worked with the U.S. Department of Justice in the investigation.
Riverside nursing home accused of kickback scheme agrees to $3.8 million settlement
From The Press-Enterprise (June 21, 2023)
A Riverside skilled nursing facility and its management company will settle with the state of California and the U.S. Department of Justice for $3.8 million following accusations of paying illegal kickbacks to doctors, California Attorney General Rob Bonta’s office announced on Wednesday, June 21.
» View full story on The Press-Enterprise
Riverside, California Skilled Nursing Facility and Management Company Agree to Pay $3.825 Million to Settle Allegations of Kickbacks to Referring Physicians
From the Sierra Sun Times (June 21, 2023)
Alta Vista Healthcare & Wellness Centre, LLC (Alta Vista), a skilled nursing facility in Riverside, California, and its management company, Rockport Healthcare Services US DOJ(Rockport), have agreed to pay the United States and California a total of $3.825 million to resolve allegations that they submitted and caused the submission of false claims to Medicare and Medicaid by paying kickbacks to physicians to induce patient referrals. The settlement amount was negotiated based on Alta Vista’s and Rockport’s lack of ability to pay.
» View full story on the Sierra Sun Times
Nursing home, management reach $3.8M settlement with feds in kickbacks case
From McKnights (June 23, 2023)
A California skilled nursing facility run by the state’s largest nursing home owner has, in conjunction with its management firm, agreed to pay $3.8 million to settle kickback allegations brought by a whistleblower.
Alta Vista Healthcare & Wellness Centre in Riverside, CA, and Rockport Healthcare Services faced False Claims Act charges of paying physicians to send them more patient referrals over an 11-year period, the Department of Justice announced late Wednesday.
» View full story on McKnights
California attorney general announces $3.8 million doctor kickback settlement
From The Center Square (June 21, 2023)
(The Center Square) — California is receiving a $3.8 million settlement with Riverside skilled nursing facility, Alta Vista Healthcare & Wellness Centre (Alta Vista), and its management company, Rockport Healthcare Services (Rockport), resolving an issue of alleged Medi-Cal fraud.
» View full story on The Center Square
Nursing Facility to Pay State, Feds $3.8 Million to Settle Kickback Claims
From My News LA (June 21, 2023)
A Riverside-based skilled nursing facility will pay $3.8 million to the federal and state governments to settle a civil action alleging payments to doctors to provide referrals to the care and rehabilitation center, officials announced Wednesday.
“Decisions that affect patient health should be made solely on the basis of a patient’s best interest,” California Attorney General Rob Bonta said. “When a healthcare company cheats and offers kickbacks to gain an unfair advantage, it jeopardizes the health and well-being of those who rely on its services.”
