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This report originally appeared in the March 2010 issue of DOTmed Business News
Five nursing homes owned and operated by Cathedral Rock, a Texas corporation, have pleaded guilty to criminal charges of health care fraud. The nursing homes were accused of gross negligence. Majority owner of Cathedral Rock, C. Kent Harrington, has also entered into a criminal deferred prosecution agreement for a period of two years. The nursing homes and Harrington will jointly pay one million dollars in criminal fines and penalties.
The nursing homes have admitted in the plea agreements that at various times: staffing was not sufficient to provide adequate nursing care; wound care was not provided; residents did not receive medications as prescribed; medical records were falsified; and nursing homes submitted fraudulent claims to Medicare and Missouri Medicare for services not provided, or inadequate services. For the deferred prosecution, Harrington has agreed to implement rigorous compliance programs in the facilities that he owns or operates to insure residents receive quality care.
The U.S. has also entered into a civil settlement with the same defendants and related Cathedral Rock entities. The civil case alleges inadequate staffing and inadequately trained staff, falsifying records, as well as disturbing instances of residents suffering from malnutrition and dehydration, pressure sores, wandering off the grounds of the facilities, and pressure sores becoming so bad due to not being treated that in some cases the sores hosted maggots, and some residents had to be subjected to amputations. Basic needs of the residents including feeding and toileting were also neglected. Cathedral Rock entities and Harrington will pay an additional $628,000 to resolve the civil allegations.
