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ResCare Whistleblowers — Have Evidence of Res -Care Misconduct? 12/16/18, 11=37 AM <br />longer be necessary. <br />We are concerned that some home visits may not be taking place. To hide that these visits and <br />.valuations are not being properly performed, we believe that non -supervisory staff is perhaps <br />simplyfilling in the review forms with fictional progress notes. <br />Prior Frauds and Major Litigation involving Res -Care <br />Res -Care is no stranger to allegations of fraud and scams. <br />In November 2009, a jury returned a verdict of approximately $53.9 million in damages against the <br />company for violations of the New Mexico Resident Abuse and Neglect Act. Approximately $4.7 <br />million of that award was for actual damages. The remaining $49.2 million was for punitive <br />damages. The trial judge later trimmed the punitive damage award to $10.8 million. <br />The New Mexico jury award didn't involve fraud but the case was so serious that jurors felt <br />compelled to impose huge punitive damages against the company. <br />Texas Res -Care Medicaid Fraud <br />In 2005, ResCare settled Medicaid fraud billing claims brought by the State of Texas and the U.S. <br />Department of Justice. The agencies claimed that the company's affiliate in Fort Worth, The <br />;itadel Group, back -dated documents and made false billings. <br />In other words, patients were receiving less care than they should have received. <br />The complaint said that workers would hold parties on Fridays but bill Medicaid as if they were <br />seeing patients. Although denying any wrongdoing, Res -Care paid $2.15 million to settle the <br />charges and closed its Ft. Worth facility. <br />The case was originally filed by a whistleblower, a former ResCare mental health provider. In her <br />complaint, she said the company: <br />1. Billed for mental health services that were medically unnecessary or never even provided, <br />2. Doctored patient records to hide their illegal activities, <br />3. Backdated records to insure Medicaid coverage wouldn't lapse, <br />4. Billed pizza parties as if actual mental health services were being provided, and <br />5. Billed for services while patients were sleeping! <br />Did Res -Care learn? Apparently not. <br />https://www.tully-weiss.com/blog.php?article=rescare-whistleblowers-have-evidence-of-res-care-misconduct_76 Page 4 of 11 <br />