On January 13, 1998, the United States Attorney for the Eastern District of Pennsylvania filed a lawsuit in the United States District Court for the Eastern District of Pennsylvania against the Chester Care Center, Bishop Nursing Home, Manchester Nursing and Convalescent Center, Bishop Nursing Home, Inc., and Commonwealth Real Estate Investors. The Chester Care Center, Bishop Nursing Home, and Manchester Nursing and Convalescent Center were long-term care facilities in Delaware County, Pennsylvania certified to participate in the Medicare and Medical Assistance programs. Bishop Nursing Home, Inc. and Commonwealth Real Estate Investors were the owners and licensees of the facilities. The complaint alleged that the defendants schemed to collect payments from the federal government for services associated with the care of elderly residents when the care provided was inadequate. It alleged violations of the False Claims Act and claimed that the defendants were unjustly enriched by funds received from the federal government. The facilities failed to provide adequate nutrition and care to their residents. The complaint noted instances of improper wound and diabetes care.

The district court (Judge Louis H. Pollack) approved a consent order on February 4, 1998. The defendants agreed to pay $500,000 in settlement of the False Claims Act violation. The defendants agreed to the appointment of a monitor for all three facilities for at least two years, to implement treatment protocols for residents with diabetes, to provide individualized treatment plans, and to train staff in all areas covered by the order.

The PACER docket indicates that there were contempt proceedings in 2000 and 2001. The action was dismissed on May 7, 2002.

Angela Heverling - 05/21/2007


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