History Of Fraud Accusations With Ownership Of Nursing Home Where 8 Died

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HOLLYWOOD (CBSMiami/AP) — The manager of a Hollywood Hills nursing home where eight people died following Hurricane Irma has a history of health-care fraud accusations.

Federal court records show the U.S. Attorney’s Office in Miami filed civil charges in 2004 against Dr. Jack Michel and Larkin Health Systems, among others. That company owns The Rehabilitation Center at Hollywood Hills, which rated “below average” in a federal quality care scorecard, where the patients died.

In 1997, before Michel owned Larkin, federal prosecutors say he was part of a kickback scheme that involved paying doctors for referrals and admission to Larkin Community Hospital. Prosecutors say that after he bought the hospital in 1998, Michel and others fraudulently increased the number of patients at the facility, along with their Medicare and Medicaid revenues, by bringing in patients from nursing homes and assisted-living facilities.

The case was settled in 2006 for $15.4 million.

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