Entities have been defrauding the U.S. federal government since the Civil War in 1861. During the war, it was discovered that businessmen were selling defective weapons, sick horses and spoiled food to the government for the soldiers in both the North and the South. To combat these issues, the False Claims Act was enacted in 1863. After several revisions, this act still remains in effect today and is used in cases ranging from businesses fraudulently trying to collect money from the government to manufacturers selling bad products because they were not tested according to government standards.
Health care issues are a frequent cause of cases filed under the False Claims Act, and a case against a Kentucky nursing home that recently settled is a good example of this. Villaspring Health Care and Rehabilitation is a nursing home located in Erlanger, Kentucky. Like most nursing homes, it receives payment for many of the services it supposedly provides from the government through Medicare and Medicaid. However, in 2011, the federal government filed a claim stating that the nursing home was fraudulently collecting money from it.
According to the complaint, the nursing home in question should not have been submitting their bills to Medicare and Medicaid because the care they were providing their nursing home residents was substandard. How substandard? Five people allegedly died at the facility between 2004 and 2008 and more were injured because of the nursing home's negligence and insufficient care. The case, which was recently settled, is the first of its kind filed against a Kentucky nursing home under the False Claims Act. Advocates for improving care at nursing homes hope that this case and other future ones like it will improve the care at nursing homes and lessen the amount of abuse and neglect that occurs in Kentucky.