KMB Client Receives $2.79 Million in Medicare Fraud and Retaliation Settlement

Qui Tam Complaint Cover - Lovvorn v Extendicare

False Claims Act whistleblower Tracy Lovvorn, represented jointly by Katz, Marshall & Banks and whistleblower law firm Vogel, Slade & Goldstein, LLP, 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 Progressive Step Corporation, 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 and increasing the company’s profits.  When she complained about these fraudulent practices to higher management, her supervisors began to harass and retaliate against her, culminating in her departure from the company in November 2009.

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 the information she provided that led to that government recovery.  In addition, she will receive $990,000 to resolve her claims of unlawful whistleblower retaliation and attorneys' fees.

Learn more about the lawsuit and its settlement from the resources provided below:

Nursing Home Chain Pays $38M in False Claims Act Suit
October 10, 2014

Press Release: Whistleblower Receives $2.79 Million in Settlement of Medicare Fraud and Retaliation Lawsuit Against Extendicare
October 10, 2014

Lovvorn-Extendicare Settlement Agreement
October 2, 2014

Complaint: U.S. ex rel. Tracy Lovvorn, et al. v. Extendicare Health Services, Inc., et al.
April 9, 2010