Western Pa. nursing home chain reaches $15.4M settlement for inappropriate therapy - Insurance News | InsuranceNewsNet

InsuranceNewsNet — Your Industry. One Source.™

Sign in
  • Subscribe
  • About
  • Advertise
  • Contact
Home Now reading Newswires
Topics
    • Advisor News
    • Annuity Index
    • Annuity News
    • Companies
    • Earnings
    • Fiduciary
    • From the Field: Expert Insights
    • Health/Employee Benefits
    • Insurance & Financial Fraud
    • INN Magazine
    • Insiders Only
    • Life Insurance News
    • Newswires
    • Property and Casualty
    • Regulation News
    • Sponsored Articles
    • Washington Wire
    • Videos
    • ———
    • About
    • Advertise
    • Contact
    • Editorial Staff
    • Newsletters
  • Exclusives
  • NewsWires
  • Magazine
  • Newsletters
Sign in or register to be an INNsider.
  • AdvisorNews
  • Annuity News
  • Companies
  • Earnings
  • Fiduciary
  • Health/Employee Benefits
  • Insurance & Financial Fraud
  • INN Exclusives
  • INN Magazine
  • Insurtech
  • Life Insurance News
  • Newswires
  • Property and Casualty
  • Regulation News
  • Sponsored Articles
  • Video
  • Washington Wire
  • Life Insurance
  • Annuities
  • Advisor
  • Health/Benefits
  • Property & Casualty
  • Insurtech
  • About
  • Advertise
  • Contact
  • Editorial Staff

Get Social

  • Facebook
  • X
  • LinkedIn
Newswires
Newswires RSS Get our newsletter
Order Prints
February 20, 2020 Newswires
Share
Share
Tweet
Email

Western Pa. nursing home chain reaches $15.4M settlement for inappropriate therapy

Pittsburgh Tribune-Review (PA)

Feb. 20--A company that owns more than 50 nursing homes in Pennsylvania will pay more than $15.4 million to the government to settle federal whistleblower claims that it provided medically unnecessary rehabilitation therapy to residents to help meet revenue goals, U.S. Attorney Scott W. Brady said.

The civil settlement, announced by Brady's office Wednesday, is between the government and Guardian Elder Care Holdings Inc., a company operates nursing homes throughout Pennsylvania, Ohio and West Virginia.

Guardian Elder Care Holdings, based in Brockway, Jefferson County, is owned by Peter Varischetti, who is also an investor in the Pittsburgh Steelers. Varischetti didn't return messages seeking comment at his business or home.

Guardian's chief compliance officer Patricia McGillan said in a statement: "Resident care remains our first priority and we are committed to meeting our obligations under this agreement. We are confident that Guardian's Corporate Compliance Program advocates for our patients, their families and caregivers."

The settlement resolves a 2015 whistleblower complaint filed in U.S. Eastern District Court, Philadelphia, that brought the allegations to light that violate provisions of the False Claims Act. Two former Guardian employees, Philippa Kraus and Julie White, were the whistleblowers who made the claims and they will share about $2.8 million of the settlement.

About $6.2 million of unnecessary treatment was billed to Medicare and other federal health care programs at 28 facilities operated by Guardian, among them Jefferson Hills Manor in Jefferson Hills, Scottdale Manor Rehab Center in Scottdale, Beaver Elder Care and Rehabilitation Center in Hopewell and Scenery Hill Manor in Indiana, according to the settlement.

"Billing federal health care programs for medically unnecessary rehabilitation services not only depletes these programs' funds but also exploits our most vulnerable citizens," Brady said in a statement. "Our office will continue to aggressively pursue providers who take advantage of our seniors by putting financial gain ahead of patient care."

Guardian Elder Care pressured its therapists to provide services to meet financial targets and maximize revenue without regard to the clinical need for the care, according to a news release.

Guardian submitted claims to Medicare and other federal health care programs for the care and was reimbursed for it.

Some of the patients involved were receiving hospice care before death and didn't need therapy, but the company is alleged to have pressured therapists to treat them to meet financial goals, according to the release.

Guardian is also entering into a corporate integrity agreement with the U.S. Department of Health and Human Services Office of Inspector General as part of the settlement, according to the release.

Stopping elder fraud is a top priority of the Justice Department, and it's an especially important issue in Western Pennsylvania, where the population in older, Brady said.

"Most facilities are doing the right thing, they're putting patient care first," he said.

His office and other federal officials depend on whistleblowers like Krauss and White to tackle the problems with health care fraud and elder care, which is taken "very seriously," Brady said.

Tom Davidson is a Tribune-Review staff writer. You can contact Tom at 724-226-4715, [email protected] or via Twitter .

___

(c)2020 The Tribune-Review (Greensburg, Pa.)

Visit The Tribune-Review (Greensburg, Pa.) at www.triblive.com

Distributed by Tribune Content Agency, LLC.

Older

New Federal Income Tax Form Created For Seniors

Newer

Here’s a summary of the 2009 Daily News op-ed Michael Bloomberg mentioned at Wednesday’s debate

Advisor News

  • 2025 Top 5 Advisor Stories: From the ‘Age Wave’ to Gen Z angst
  • Flexibility is the future of employee financial wellness benefits
  • Bill aims to boost access to work retirement plans for millions of Americans
  • A new era of advisor support for caregiving
  • Millennial Dilemma: Home ownership or retirement security?
More Advisor News

Annuity News

  • Great-West Life & Annuity Insurance Company Trademark Application for “EMPOWER BENEFIT CONSULTING SERVICES” Filed: Great-West Life & Annuity Insurance Company
  • 2025 Top 5 Annuity Stories: Lawsuits, layoffs and Brighthouse sale rumors
  • An Application for the Trademark “DYNAMIC RETIREMENT MANAGER” Has Been Filed by Great-West Life & Annuity Insurance Company: Great-West Life & Annuity Insurance Company
  • Product understanding will drive the future of insurance
  • Prudential launches FlexGuard 2.0 RILA
More Annuity News

Health/Employee Benefits News

  • Get Covered Illinois extends first open enrollment deadline
  • Trump's idea for health accounts not new
  • Out-of-pocket pain means skimping on care
  • Trump's idea for health accounts was tried; debt soared
  • How to Appeal a Medicare Coverage Denial
Sponsor
More Health/Employee Benefits News

Life Insurance News

  • 2025 Top 5 Life Insurance Stories: IUL takes center stage as lawsuits pile up
  • Private placement securities continue to be attractive to insurers
  • Inszone Insurance Services Expands Benefits Department in Michigan with Acquisition of Voyage Benefits, LLC
  • Affordability pressures are reshaping pricing, products and strategy for 2026
  • How the life insurance industry can reach the social media generations
More Life Insurance News

- Presented By -

Top Read Stories

  • How the life insurance industry can reach the social media generations
More Top Read Stories >

NEWS INSIDE

  • Companies
  • Earnings
  • Economic News
  • INN Magazine
  • Insurtech News
  • Newswires Feed
  • Regulation News
  • Washington Wire
  • Videos

FEATURED OFFERS

Slow Me the Money
Slow down RMDs … and RMD taxes … with a QLAC. Click to learn how.

ICMG 2026: 3 Days to Transform Your Business
Speed Networking, deal-making, and insights that spark real growth — all in Miami.

Your trusted annuity partner.
Knighthead Life provides dependable annuities that help your clients retire with confidence.

Press Releases

  • Two industry finance experts join National Life Group amid accelerated growth
  • National Life Group Announces Leadership Transition at Equity Services, Inc.
  • SandStone Insurance Partners Welcomes Industry Veteran, Rhonda Waskie, as Senior Account Executive
  • Springline Advisory Announces Partnership With Software And Consulting Firm Actuarial Resources Corporation
  • Insuraviews Closes New Funding Round Led by Idea Fund to Scale Market Intelligence Platform
More Press Releases > Add Your Press Release >

How to Write For InsuranceNewsNet

Find out how you can submit content for publishing on our website.
View Guidelines

Topics

  • Advisor News
  • Annuity Index
  • Annuity News
  • Companies
  • Earnings
  • Fiduciary
  • From the Field: Expert Insights
  • Health/Employee Benefits
  • Insurance & Financial Fraud
  • INN Magazine
  • Insiders Only
  • Life Insurance News
  • Newswires
  • Property and Casualty
  • Regulation News
  • Sponsored Articles
  • Washington Wire
  • Videos
  • ———
  • About
  • Advertise
  • Contact
  • Editorial Staff
  • Newsletters

Top Sections

  • AdvisorNews
  • Annuity News
  • Health/Employee Benefits News
  • InsuranceNewsNet Magazine
  • Life Insurance News
  • Property and Casualty News
  • Washington Wire

Our Company

  • About
  • Advertise
  • Contact
  • Meet our Editorial Staff
  • Magazine Subscription
  • Write for INN

Sign up for our FREE e-Newsletter!

Get breaking news, exclusive stories, and money- making insights straight into your inbox.

select Newsletter Options
Facebook Linkedin Twitter
© 2025 InsuranceNewsNet.com, Inc. All rights reserved.
  • Terms & Conditions
  • Privacy Policy
  • InsuranceNewsNet Magazine

Sign in with your Insider Pro Account

Not registered? Become an Insider Pro.
Insurance News | InsuranceNewsNet