WASHINGTON - The United States and the District of Columbia have reached a $2 million settlement with the owners and operators of Grant Park Care Center (GPCC), a 296-bed skilled nursing facility located in the District of Columbia to settle allegations regarding fraudulent billings to Medicare and Medicaid between 1998 and 2007, U.S. Attorney Jeffrey A. Taylor, the Department of Justice's Civil Division, Health and Human Services (HHS) Inspector General Daniel R. Levinson, and District of Columbia Inspector General Charles J. Willoughby announced today.

Grant Park Care Center, which is located at 5000 Nannie Boroughs Avenue, NE, Washington, D.C., is owned and managed by Centennial HealthCare Corporation, Grant Park Nursing Home Limited Partnership, Grant Park Management LLC, Centennial Service Corporation-Grant Park, Centennial Acquisition Corporation, Centennial Healthcare Management Corporation, Centennial Employee Management Corporation, Hilltopper Acquisition Corporation, Hilltopper Holding Corporation, Shoreline HealthCare Management LLC and Coastal Administrative Services LLC (collectively "Centennial"). Centennial is one of the largest nursing home owners in the United States.

The Government's investigation was initiated as a result of a "whistle-blower" suit filed in U.S. District Court for the District of Columbia in 2002 under the qui tam provisions of the False Claims Act. Under the False Claims Act, a private party can file such a legal action on behalf of the United States and can collect a share of any recovery. The complaint, which was filed under seal as required by law, alleged that GPCC violated the Federal and District of Columbia False Claims Acts by seeking reimbursement for skilled nursing services and other services that were not provided or were so inadequate that they amounted to worthless services being provided. As a result of the settlement, the Court unsealed the case on November 20, 2008.

The Government's comprehensive investigation confirmed that Centennial routinely reduced staffing levels of certified nurse aides, licensed practical nurses, and registered nurses at Grant Park Care Center which resulted in compromised care being provided to its residents. The investigation also revealed that services to certain residents at Grant Park Care Center were either not rendered or were of a quality that failed to meet professionally recognized standards of health care. Specifically, numerous residents at Grant Park Care Center suffered from dehydration, malnutrition and increased infections. Residents were left alone for extended periods of time without cleaning or bathing, and often contracted preventable pressure sores. The United States and the District of Columbia also alleged that the staff at Grant Park Care Center failed to develop and follow resident care plans to meet the individual needs of each resident.

In conjunction with the False Claims Act settlement with the Government, the Office of Inspector General of the Department of Health and Human Services (OIG) has required that Grant Park Care Center and its current management company, Grant Park Management, LLC, enter into a Corporate Integrity Agreement (CIA). Included in the CIA is a requirement that Grant Park Care Center, at its own expense, retain an independent monitor appointed by the OIG to assess and monitor the effectiveness of Grant Park Care Center's internal quality control systems.

"This case demonstrates OIG's commitment to holding nursing homes responsible for providing quality care to the frail and elderly. Under the five-year Corporate Integrity Agreement, Grant Park Care Center will be required to establish and maintain a robust compliance program that focuses on improving the quality of resident care," said HHS Inspector General Levinson.

"This settlement, made possible by the exhaustive investigation, reinforces our commitment to using all available remedies to ensure the integrity of the Medicaid and Medicare programs as well as holding nursing homes accountable when they fail to provide adequate care to residents," said U.S. Attorney Taylor.

Centennial agreed to settle under the Federal False Claims Act in the amount of $2 million, which will be apportioned among the Federal and District governments. As required under the False Claims Act, the "whistle-blowers" who filed the complaint will also receive a portion of the settlement proceeds. The owners and operators of Grant Park Care Center denied liability as part of the settlement.

In announcing the settlement, the Department of Justice's Civil Division, U.S. Attorney Taylor, HHS Inspector General Levinson and D.C. Inspector General Willoughby commended members of the Office of Inspector General and Office of General Counsel. In particular, they praised the outstanding efforts and assistance of former Senior Counsel Kelly Bagby; Office of Counsel to the Inspector General; Senior Counsel Katie Arnholt, Office of Counsel to the Inspector General; and Special Agents Kenneth Marty and Cindy Sheedy. For their efforts in coordinating the civil investigation and settlement discussions, U.S. Attorney Taylor, Inspector General Levinson, and Inspector General Willoughby commended Special Assistant U.S. Attorney Stuart Silverman, of the District of Columbia Medicaid Fraud Control Unit; the Commercial Litigation Branch, Civil Division, U.S. Department of Justice; and Assistant U.S. Attorney Paul A. Mussenden.