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The ProMedica and HCR ManorCare care lawsuit alleges that four nursing homes billed Medicare and Medicaid for nonexistent or grossly substandard care and that staff used false medical records to conceal missed services. The government’s account reaches from corporate staffing limits to charts recording care for residents who were elsewhere in a hospital. For someone who worked on those floors, the difference between the chart and the shift is the heart of the case.
The Justice Department announced its intervention on September 2, 2025. The case began with qui tam complaints from two former employees, a nursing director who also worked as an assistant director and a Pottstown human resources director. The government’s consolidated complaint describes what employees saw, what managers required and what the facilities billed.
The four homes operated as ProMedica Skilled Nursing and Rehabilitation: Pottstown in Pennsylvania, Riverview in South Point, Ohio, Greenville East in Greenville, South Carolina, and Imperial in Richmond, Virginia. The government’s overall allegation period runs from 2017 through 2023.
The government alleged failures in basic care required by the Nursing Home Reform Act. The homes allegedly failed to create or follow individualized care plans, provide adequate wound care, keep residents clean and assist them with eating. Some residents allegedly suffered severe weight loss. Others developed painful contractures as their ability to move deteriorated.
The complaint connects those failures to decisions above the nursing station. It alleges that managers continued accepting residents whose needs exceeded the staff’s capacity, while regional and corporate leaders received survey findings describing deficient care. The government says the facilities kept billing for those services despite those warnings.
Residents needed help turning, eating and washing. The government alleges that taxpayers, through Medicare and Medicaid, paid for care those residents did not get. False charting allegedly made that gap harder to see.
The alleged staffing fraud began with corporate limits on hours per patient day, the HPPD figure familiar to nursing-home schedulers. The complaint says regional and corporate employees set the labor budget, and administrators had to report whenever they exceeded it. Imperial’s administrator allegedly ordered employees not to report for work when their hours would push the facility over its limit.
The bonus plan supplied another reason to keep staffing down. Describing the nursing directors’ plan, the government alleged:
DONs would also lose 25% of their quarterly bonus if their facility used any staff from agencies (that is, agency nurses or CNAs).
Government allegation, United States, et al., ex rel. Compton v. HCR ManorCare, Inc., et al., consolidated complaint in intervention, paragraph 168
Bringing in help could cost the nursing director part of a bonus. Meanwhile, the complaint says regional operations directors’ bonus plans rewarded increased admissions and revenue while keeping facilities within their staffing budgets.
Admissions also sat above the facility. The government alleged that corporate Central Intake employees made those decisions instead of the onsite administrator or nursing director who knew the available staff and equipment. At Pottstown, a nursing director allegedly answered a unit manager’s request to stop admissions by saying the facility needed “heads in the beds.”
That is the conflict the complaint describes: financial rewards for filling beds, financial pressure to limit the people available to care for whoever arrived.
The alleged false records describe specific care that employees said never happened. At Riverview, a chart recorded a resident’s refusal of a shower while she was hospitalized elsewhere. At Imperial, treatment records allegedly showed care on shifts after a resident had left for the hospital. Medication records said drugs had been given while progress notes said the pharmacy had not yet delivered them.
At Pottstown, the government alleged that employees marked weights as completed without weighing residents. Another resident’s tracheostomy tube was crusted with mucus despite documentation that it had been changed. The complaint also describes an administrator directing the human resources director to find staff to sign blank medication and treatment entries:
Nurses admitted to [the human resources director] that they never completed the treatment when they were asked to sign off on these entries.
Government allegation, United States, et al., ex rel. Compton v. HCR ManorCare, Inc., et al., consolidated complaint in intervention, paragraph 489
A signature was being sought for treatment the nurses said they had not provided. The paperwork could make an unfinished task disappear while leaving the resident’s need untouched.
The care-plan allegations show the same persistence. One Pottstown resident allegedly fell approximately 65 times during his stay without individualized updates to his care plan after each fall. In its 1997 report on health care fraud, the California Research Bureau described the broader problem of repeated inadequate treatment:
Underutilization refers not to one medical mishap, but to a systematic pattern of substandard medical treatment.
Fraud and Abuse in the Health Care Market of California, California Research Bureau, 1997
Here, the government alleges a pattern reinforced by budgets, admissions decisions and records concealing the consequences.
The complaint alleges that the facilities increased staffing during state inspections and cut it after inspectors left. At Greenville East, employees allegedly used a code to announce inspectors’ arrival, then changed shifts so more staff worked with residents while surveyors were present.
The government says this also distorted the quality measures used in bonus plans. A plan could reward survey results while the inspection itself showed a staffing level residents did not ordinarily receive.
ProMedica’s stated ownership period was 2018 through 2023, beginning after the alleged care failures started. Welltower’s acquisition announcement places the HCR ManorCare transaction’s completion in July 2018. The complaint alleges that ProMedica continued the existing bonus policies after taking over.
The operator, employer and corporate owner can appear under different names in healthcare records. This complaint identifies ProMedica Employment Services as a co-employer. It identifies HCR ManorCare as a holding company and alleges that revenue from the homes passed through it to ProMedica.
Those distinctions connect a facility’s payroll and bill to the people controlling its budget.
The older HCR ManorCare case concerned alleged medically unnecessary therapy, reimbursement targets and pressure to keep residents who were ready for discharge. Whistleblowers started that case, and the Justice Department announced it was joining them in 2015. The court granted the government’s request to dismiss its case in November 2017.
The recurring allegation is financial pressure reaching clinical decisions.
For this kind of care-and-billing case, the evidence connects what residents needed and received to what the facility recorded and billed. A hospital-transfer record can contradict the chart’s claim that a resident received treatment at the home.
The government’s complaint alleges that state surveys, internal audits, complaints and internal communications alerted the defendants to care failures, yet they continued submitting thousands of Medicare and Medicaid claims. We work with insiders to connect their view of those decisions to the care records and government payments.
A whistleblower case under the False Claims Act can pay the whistleblower 15% to 30% of what the government recovers.
If you saw staffing limits override care needs or employees asked to sign for care they never delivered, tell our whistleblower experts what happened. We build the case with you around the decisions behind those records and bring in nursing-home fraud whistleblower lawyers who understand care-quality and billing cases. We stay beside you to build your strongest nursing home whistleblower case from what you know about the floor.