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November 25, 2015 5:14 AM ET

Healthcare Providers and Services

Company Overview of HCR ManorCare, Inc.

Company Overview

HCR ManorCare, Inc. and its subsidiaries provide a range of health care services in the United States. Its services include post-acute care, skilled nursing care, assisted living, hospice care, home health care, and rehabilitation therapy. The company provides medical and rehabilitation services in the areas of joint replacement, orthopedic injuries, stroke and neurological conditions, cardiac-related problems, pulmonary impairment, diabetes management, post-surgery recovery, wound care, and oncology care; and infusion therapy care services for patients with various medical conditions, including cancer, serious infection, GI disease, chronic pain, immune disorder, and neurological disease. I...

333 North Summit Street

Toledo, OH 43604

United States

Founded in 1991





Key Executives for HCR ManorCare, Inc.

Chairman of the Board, Chief Executive Officer and President
Age: 65
Chief Financial Officer and Vice President
Age: 44
Vice President, Secretary and General Counsel
Age: 56
Principal Accounting Officer, Controller and Vice President
Age: 67
Vice President, Director of Marketing and General Manager of Midwest Division
Age: 72
Compensation as of Fiscal Year 2015.

HCR ManorCare, Inc. Key Developments

Federal Judge Denies Motion to Dismiss Involving HCR ManorCare in False Claims Act Case Alleging Medicare Fraud

In April 2015, the United States disclosed its filing of a consolidated complaint against HRC ManorCare for submitting false claims to Medicare for rehabilitation services. Defendants HCR ManorCare, Inc., Manor Care, Inc., HCR ManorCare Services LLC, and Heartland Employment Services LLC filed a Motion to Dismiss on July 7, 2015 in the U.S. District for the Eastern District of Virginia. On September 4, 2015, Judge Claude M. Hilton denied Defendants' Motion to Dismiss finding that the government's complaint alleging Medicare fraud in the provision of skilled therapy services stated a viable cause of action under the False Claims Act. In their Motion to Dismiss Defendants argued that the government had failed to state a claim as matter of law because the disputed reimbursement claims involve clinical disagreements over what constitutes reasonable and necessary therapy. Judge Hilton, ruling from the bench, rejected this argument noting that if such position was adopted, there could never be a False Claims act case. Under Medicare, nursing homes bill skilled therapy at one of five different levels - Low, Medium, High, Very High or Ultra High – based on the amount of therapy that the patient needs. At the time of oral argument, ManorCare's attorney failed to address the significant increase in Ultra High billing levels for ManorCare facilities. With the Motion to Dismiss denied, the case will now transition into discovery, where the government will seek to develop additional information supporting their fraud allegations.

HCR ManorCare Announces Earnings Results for the Six Months of 2015

HCR ManorCare announced earnings results for the six months of 2015. normalized year-to-date EBITDAR results are 2.6% above prior year.

The United States Department of Justice Files Complaint against HCR ManorCare, Inc

The United States Department of Justice (DOJ) filed a complaint on April 20, 2015, against HCR ManorCare, Inc. and certain of its affiliates (collectively HCRMC). The DOJ's complaint follows a civil investigation of three previously-sealed lawsuits filed by former employees of HCRMC under the qui tam provisions of the federal False Claims Act. The United States intervened against HCRMC in the parts of the civil actions alleging that they submitted claims to Medicare for therapy services that were not covered by the skilled nursing facility benefit, were not medically reasonable and necessary, were not skilled in nature, and therefore not entitled to Medicare reimbursement. The cases are consolidated in the United States District Court for the Eastern District of Virginia. The DOJ complaint relates to the previously disclosed Civil Investigative Demand and related requests for information regarding HCRMC's skilled nursing facilities coordinated by the DOJ. The government's case against HCRMC is one of several brought in the past few years against skilled nursing facility operators alleging the provision of unnecessary rehabilitation therapy. Since the case is at a preliminary stage, the ultimate outcome is uncertain.

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