Ohio sues nursing home operator over Medicaid

COLUMBUS(AP) — Ohio has sued a nursing home operator, alleging the company overstated consulting expenses at 21 nursing homes in 13 cities, causing the state to overpay Medicaid reimbursements meant to provide care for those unable to afford it.

The lawsuit filed today in Franklin County says Carington Health Systems submitted erroneous reports to the state in 2003, causing inflated reimbursement rates in fiscal years 2005 through 2010. It seeks reimbursement for the overpaid funds as well as other monetary damages.

Atty. Geoffrey Webster says Carington has not yet seen the lawsuit, but that the company’s cost reports have consistently undergone Medicare and Medicaid audits without needing adjustments. He says a state hearing is ongoing regarding one report that was incomplete.