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Vanguard accused of trying to circumvent health-care fraud litigation
By Angela McDaniels
Tacoma, Wash., Feb. 13 – Vanguard Healthcare LLC is accused of attempting to circumvent health-care fraud litigation in district court, according to a filing with the Bankruptcy Court for the Middle District of Tennessee, Nashville Division.
The United States filed a False Claims Act case against Vanguard Healthcare in September in the District Court for the Middle District of Tennessee.
The lawsuit alleges that the defendants were responsible for the submission of false claims to Medicare and Medicaid for skilled nursing home services that were either non-existent or grossly substandard, according to a news release from the Department of Justice.
The lawsuit also alleges that the defendants submitted required nursing facility pre-admission forms with forged physician and nurse signatures.
The United State and Tennessee believe the bankruptcy court should stay proceedings related to the company’s objections to their proofs of claim pending the district court’s disposition of their joint motion to withdraw the reference.
The United State and Tennessee believe the company’s arguments against a stay are without merit.
Because the issue of the company’s False Claims Act liability is already before the district court, the matter will be simultaneously litigated in both the district court and the bankruptcy court unless the reference is withdrawn. Under these circumstances, the plaintiffs argued that good cause exists to withdraw the reference.
“The debtors’ attempt to circumvent the ongoing health-care fraud litigation in district court should be not be countenanced,” the plaintiffs said in the filling.
A hearing will be held at 9 a.m. ET on Feb. 14.
Vanguard Healthcare is a Brentwood, Tenn., long-term care provider. The company filed bankruptcy on May 6, 2016 under Chapter 11 case number 16-03296.
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