FOR IMMEDIATE RELEASE                                         CIV
FRIDAY, DECEMBER 1, 1995                           (202) 616-2765
                                               TDD (202) 514-1888
                                 
              THREE HEALTH CARE FACILITIES PAY U. S.
              $2.2 MILLION TO SETTLE MEDICARE CLAIMS
                                 
     WASHINGTON, D.C. -- The Department of Justice announced
today that three health care providers will pay a total of $2.2
million to the United States to settle allegations they submitted
false Medicare bills for supplies used by patients in nursing
homes and skilled nursing facilities. 
     Assistant Attorney General Frank Hunger of the Civil
Division said the settlements were with: 
     --Health Care Capital, a Shreveport, Louisiana, management
company, and the eight Florida nursing homes it managed.  The
company's past and present owners have included Florida Health
Care Associates Limited Partnership, Florida Health Care
Associates II Limited Partnership, Heritage Park/Brandenton
Associates Limited Partnership and Litchfield Asset Management
Corporation.  
     --Central Park Lodges, a Florida company that operates a
chain of nursing homes. 
     --Health Resources Northwest, which operates a skilled
nursing facility in Seattle, Washington.     
     Hunger said HCC will pay the United States $620,000,
including about $180,000 the government already has recovered;
CPL will pay $550,000; and Northwest will pay $1,030,785, 
including $412,314 which Northwest voluntarily paid in 1992 when
it was advised of the government's investigation.  
     In 1989 and 1990, HCC, CPL and Northwest entered into
separate agreements with a third party billing agent, Handled
With Care, under which HWC would review the medical records of
the facilities, then bill the government for medical supplies
supposedly used in the treatment of patients at the various
facilities that could have been charged to Medicare.  Under the
agreements, the providers and HWC would share equally in the
proceeds of any overlooked claims paid under Medicare.  
     The government determined that the vast majority of charges
submitted by HWC on behalf of the providers were not supported by
the patients' medical records and not reimbursable under
Medicare.  
     Today's settlements bring to five the number of providers
that contracted with HWC and subsequently settled with the
government for falsely billing Medicare.  The government's total
recoveries in these cases is $2,860,712.  
     Hunger commended the work and the assistance of the agents
and auditors of the Department of Health and Human Services'
Office of the Inspector General in resolving these matters.
     Under the False Claims Act, the United States can recover
three times its damages and up to $10,000 for each false claim
submitted to the government.
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95-598