Whistleblower Receives $2.79 Million in Settlement of Medicare Fraud and Retaliation Lawsuit Against Extendicare
Former Employee’s Qui Tam Lawsuit Leads to $10 Million Taxpayer Recovery From Nursing Home Chain
Washington, D.C., October 10, 2014. Whistleblower Tracy Lovvorn, represented jointly by the qui tam law firm Vogel, Slade & Goldstein, and Katz, Marshall & Banks, announced today that she has settled her claims of Medicare fraud and retaliation for just under $2.8 million. Ms. Lovvorn worked as an Area Director of Rehabilitation at a division of Extendicare Health Services, Inc. in 2008 and 2009. During that time, she learned that some of the company’s skilled nursing facilities were providing patients with unnecessary therapy for the sole purpose of obtaining higher reimbursements from Medicare. When she complained about these fraudulent practices to higher management, she was harassed and then fired.
Ms. Lovvorn filed a qui tam lawsuit against the company in April 2010, and as part of today’s settlement, the U.S. government will receive $10 million to resolve the allegations of Medicare fraud made against Extendicare. Ms. Lovvorn will receive $1.8 million as a reward for her contribution to the government’s recovery and $990,000 to resolve her claims of unlawful whistleblower retaliation and attorneys’ fees.
Read the settlement agreement.