Genesis Healthcare, Inc.
GEN
Information Technology
3
exclusion reasons
1 theme
This page is part of our public exclusion list — a transparency tool that shows which companies we screen out and why. It is not investment advice, and it is not an accusation. But it is subject to change as our understanding of the facts evolves.
Genesis Healthcare submitted false claims to Medicare, TRICARE, and Medicaid across six acquired subsidiaries over a decade (2003–2013), billing federal healthcare programs for rehabilitation therapy sessions that lasted fewer minutes than reported or were not medically necessary, hospice services for patients who were not terminally ill, and nursing care the Department of Justice characterized as "worthless." Seven former employees filed separate whistleblower complaints under the False Claims Act. In June 2017, Genesis settled for $53.6 million — one of the larger healthcare billing fraud recoveries involving a single nursing home operator.
The EEOC has sued Genesis Healthcare multiple times for disability discrimination under the ADA. In September 2020, the EEOC sued Genesis Healthcare LLC, d/b/a Mount Olive Care & Rehabilitation Center in North Carolina, for firing Margaret Washington, a cook and dietary aide hired in June 2013 who had a physical impairment limiting use of the left side of her body — despite her ability to perform her job duties. In a separate action, the EEOC sued Genesis Healthcare for refusing to hire Stefan Denisiuk, a deaf applicant, at its Holly Manor Center in New Jersey after initially offering him two part-time food service positions and then grilling him about his ability to communicate in a second interview. The DOJ also investigated Genesis Healthcare facilities for refusing admission to individuals being treated with buprenorphine or methadone for opioid use disorder — individuals who are generally considered disabled under federal civil rights laws. The pattern of disability discrimination spans hiring, firing, and patient admission across multiple states and facilities.
Genesis Healthcare paid $53.6M (June 2017) to resolve six federal False Claims Act lawsuits involving medically unnecessary therapy and hospice services across acquired subsidiaries. From 2003-2013, the companies billed Medicare, TRICARE, and Medicaid for: (1) hospice services for patients who were not terminally ill (2010-2013); (2) rehabilitation therapy provided longer than medically necessary or billed for more minutes than delivered (2005-2013); and (3) nursing care so grossly substandard as to be worthless (2003-2010). Seven former employees filed whistleblower complaints exposing the fraud.
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