Grace, not Hillcrest, in fed trouble

Over the weekend local spin wiz Cynthia Moxley sent out a note to county commissioners, letting them know that the U.S. Department of Justice issued a news release involving Grace Healthcare and Grave Ancillary Services.

"I just wanted you to know that although Grace does have a management contract with Hillcrest Healthcare, the investigation to which the news release refers does not involve Hillcrest Healthcare facilities," she wrote.

She also noted that several months ago Hillcrest Grace Ancillary Services of Hillcrest's intent to terminate its contract with Grace Ancillary to manage Hillcrest's rehabilitation units in Knox County.

I'm assuming that Moxley represents Hillcrest Healthcare and she's trying to quell any rumors before they start.

Anyhoo, you can find the release right smack here.

In part, it states:

The Justice Department announced today that Chattanooga, Tenn., based nursing home manager Grace Healthcare LLC and its affiliate Grace Ancillary Services LLC (collectively, Grace) have agreed to pay $2.7 million, plus interest, to resolve allegations that they violated the False Claims Act by knowingly submitting or causing the submission to the Medicare and TennCare/Medicaid programs of false claims for medically unreasonable and unnecessary rehabilitation therapy.   Grace Ancillary Services LLC provided the therapy in some of the skilled nursing facilities Grace Healthcare LLC owns and/or manages in Tennessee and elsewhere.