Bond's LTC Group obtains $11 Million Medicaid Settlement
July 15, 2018
By: Justin C. Tan
In a recent Court-ordered settlement, the State agreed to pay $11 million to resolve a declaratory judgment against the State Department of Health and Division of Budget involving impairment of Medicaid rate reimbursement for five skilled nursing facilities. This lawsuit involved five nursing homes (Bridge View Nursing Home, Inc., Fulton Commons Care Center, Inc., Mayfair Care Center, Inc., Midway Nursing Home, Inc., and River Valley Care Center, Inc.) who were contesting DOH restrictions on the processing of rate appeals. Bond commenced this action alleging that the Defendants’ failure violated federal regulations and the US Constitution’s impairment of contracts clause.
After a significant victory on venue and the pursuit of declaratory relief (decision available here), which was followed by extensive discovery and depositions, the parties agreed to settle this matter via a so-ordered stipulation requiring the State to pay $11,000,000 in exchange for the full settlement of any and all pending rate appeals or future rate appeals for rate years 2007 through 2017.