Whistleblower Exposes Kickbacks

McKnight’s reported another settlement involving a kickback scheme.  Alta Vista Healthcare & Wellness Centre nursing home run by the infamous Shlomo Rechnitz, the largest nursing home owner in California. He agreed to pay $3.8 million to settle kickback allegations and violations of the False Claims Act.

A press release stated Alta Vista also paid physicians monthly stipends of $2,500 to $4,000, “purportedly” for their services as medical directors but really for referrals. A similar 2019 False Claims suit alleges Alta Vista, Rechnitz, Brius and Rockport paid cash kickbacks to employees who recruited skilled patients.

The settlement amount was negotiated based on his “lack of ability to pay,” the government said. Yeah, I guess he hid his millions well.