Bryan Cohen Feb. 26, 2013, 7:04pm

FRANKFORT, Ky. (Legal Newsline) - United States Attorney for the Eastern District of Kentucky Kerry Harvey announced a settlement Monday with an Erlanger nursing home to resolve False Claims Act allegations against the facility.

Under the terms of the settlement, Villaspring Health Care Center Inc. and Carespring Health Care Management will enhance quality care provided to residents of Villaspring's Erlanger nursing home and apprise Harvey's office of the enhancements made over the next three years.

Kentucky Attorney General Jack Conway referred the matter to Harvey's office after his Office of Medicaid Fraud and Abuse Control looked into the facility's conduct.

"We are pleased to reach an agreement," Harvey said. "The focus of the agreement is ensuring that quality of care standards are met and the consultant provisions of the settlement will provide real benefits to Villaspring residents. The judge's ruling in this matter establishes that the failure of care theory will be an important tool available for use in appropriate cases."

As part of the agreement, Villaspring and Carespring will also pay $350,000 to the federal government, retain an independent compliance consultant to review Villaspring's existing compliance program and develop enhancements to the program and patient care. Villaspring's consultant will provide quarterly reports to Harvey's office.

The settlement resolves False Claims Act allegations brought against Villaspring and Carespring in a July 2011 lawsuit for conduct that allegedly occurred between 2004 and 2008.

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