A Riverside-based skilled nursing facility has agreed to pay $3.8 million to settle a civil action brought by the federal and state governments. The allegations involve payments to doctors in exchange for referrals to the care and rehabilitation center. This news was announced by officials on Wednesday.
California Attorney General Rob Bonta emphasized the importance of making decisions about patient health solely based on their best interest. He noted that when a healthcare company cheats and offers kickbacks to gain an unfair advantage, it puts the health and well-being of those who rely on its services at risk.
The investigation into Alta Vista Healthcare & Wellness Centre, the operator of a nursing home on Garfield Street, and its management company, Rockport Healthcare Services, was conducted by the California Department of Justice’s Division of Medi-Cal Fraud and Elder Abuse, as well as the U.S. Department of Justice. State officials received information that multiple doctors had received monetary incentives from 2009 to 2019 to refer patients to the Alta Vista facility.
Alta Vista and Rockport were found to be in violation of the California False Claims Act and the federal Anti-Kickback Statute and False Claims Act.
Attorney General Bonta highlighted the negative impact of such illegal schemes on public services and programs, as they increase costs and waste taxpayer dollars. He emphasized the commitment to protect the integrity of Medi-Cal and the taxpayer dollars that support it. Medi-Cal is California’s federally supported Medicaid program that provides health insurance services to qualifying recipients, including the indigent and disabled.
Deputy U.S. Assistant Attorney General Brian Boynton expressed concern about kickbacks impairing the independence of physician decision-making and wasting taxpayer dollars. He reassured that the Justice Department is dedicated to preventing illegal financial relationships that undermine the integrity of public healthcare programs.
Prosecutors revealed that Alta Vista’s representatives provided kickbacks to doctors in the form of cash and gifts over the span of a decade. These referrals resulted in millions of dollars in reimbursement from Medicare and Medi-Cal for Alta Vista and Rockport. Inducing or rewarding doctors to steer or refer Medi-Cal and Medicare patients can lead to over-utilization of publicly-funded health care services, increased costs, corruption in medical decision-making, and unfair competition.
The exact number of referrals was not disclosed in the settlement. As part of the agreement, the federal government will receive a little over $3.2 million in penalties and reimbursement, while California will receive $596,700.
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