Care provider to pay
state $1.2 million
Long-term care provider Beverly Enterprises Hawaii Inc. will pay $1.2 million to settle allegations of overbilling for Medicaid services.
Beverly does business in Hawaii as Hale Nani Rehabilitation and Nursing Center at 1677 Pensacola St. and Beverly Manor at 1930 Kamehameha IV Road. The two facilities provide care for nearly 400 patients.
An investigation by the state Medicaid Investigations Division found that between 1996 and 2003, workers at Hale Nani falsified records, had irregular prescription practices and engaged in kickback schemes for medication and pharmacy services.
Former Hale Nani nursing director Virginia Dagdag and former medical director Curtis Takemoto-Gentile both pleaded no contest earlier this year to one count of falsifying business records. Dagdag was fined $5,000 while Takemoto-Gentile was fined $10,000. Both had their convictions deferred.
The investigation started after two former Hale Nani employees filed a lawsuit alleging falsification of records. One of the two employees was asked to falsify medical records and refused to do so, Parrish said. Both will share a $250,000 reward for their contributions to the investigation.
As part of the settlement, the state Medicaid program will receive $131,923.66 in restitution, plus a penalty of $619,076.34.