Attorney General Becerra Announces $1 Million Settlement Against Nursing Facility for Medi-Cal Fraud

 Public Encouraged to Report Elder Abuse and Medi-Cal Fraud to BMFEA’s Hotline (800) 722‑0432 or www.oag.ca.gov

SACRAMENTO – California Attorney General Xavier Becerra today announced a $1 million settlement against the owner and operator of Legacy Post-Acute Rehabilitation Center (Legacy), a skilled nursing facility in San Bernardino, for alleged violations of the California False Claims Act. The settlement resolves allegations that Legacy wrongfully billed Medi-Cal for patients needing a heightened level of skilled nursing care known as subacute care, specifically by failing to provide the minimum number of nursing hours for subacute care and assigning subacute patients to non-subacute beds.

“Today’s settlement should serve as a reminder to all businesses that it doesn’t pay to cut corners or break the rules," said Attorney General Becerra. "Skilled nursing facilities like Legacy are entrusted with caring for some of California’s most vulnerable populations. At the California Department of Justice, we are committed to protecting the health and safety of our aging loved ones from anyone who tries to profit at their expense.”

Through the Bureau of Medi‑Cal Fraud and Elder Abuse (BMFEA), the Attorney General’s office regularly works with whistleblowers and law enforcement agencies to investigate and prosecute fraud perpetrated on the Medi‑Cal program. False claims lawsuits pursued by Attorney General Becerra have recovered tens of millions of dollars from medical companies and providers for allegations of billing for services not rendered, unlawful kickbacks, improper marketing, and other wrongful practices.   

Members of the public who have information concerning Medi‑Cal fraud or elder abuse in nursing homes or other residential care facilities are urged to call BMFEA’s hotline at (800) 722‑0432 or visit the Attorney General’s website at https://oag.ca.gov/ to file a complaint.

The claims settled by this agreement are allegations only, and there has been no determination of liability.

The California Medicaid Fraud Control Unit receives 75 percent of its funding from the U.S. Department of Health and Human Services under a grant award totaling $42,322,848 for Federal fiscal year (FY) 19/20. The remaining 25 percent, totaling $14,107,616 for FY 19/20 is funded by the State of California.

A copy of the settlement can be found here.