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Commonwealth Reaches Settlement with Kindred

View diagram of settlement allocations

(Frankfort, KY February 10, 2004) - Fayette County Commonwealth's Attorney, Ray Larson, Special Prosecutor for the Office of the Attorney General, and Attorney General Greg Stumbo, held a press conference to discuss a settlement agreement reached by Larson with Kindred Nursing Centers Limited Partnership (Kindred). The settlement follows a four year investigation of four nursing homes -- in Bowling Green, Danville, Lexington, and Winchester -- operated by Kindred by the Medicaid Fraud and Abuse Control Division. The following issues of quality patient care were investigated:

* Dehydration

* Untreated or delayed treatment of infections leading to sepsis

* Serious injuries from failure to assess and properly use restraints

* Lack of necessary supplies to treat life-threatening conditions

* Failure to assess and treat wounds

* Failure to administer medication as ordered (including pain medications, antibiotics and oxygen)

* Failure to recognize significant changes in patient condition and notify a physician

"Abuse and neglect of patients will not be tolerated. I am pleased that the Commonwealth and Kindred are working towards the common goal of improving the quality of care in Kindred nursing facilities in Kentucky," said Attorney General Stumbo.

To efficiently achieve the goal of quality care, the Commonwealth of Kentucky and Kindred have agreed that all matters under investigation by the Commonwealth of Kentucky will be resolved if Kindred achieves the following within 30 days of the agreement:

a. Cost of Corporate Integrity Agreement (Monitor): $450,000

b. 4 Geriatric Nurse Practitioners: $1,380,000

c. Enhanced Training: $900,000

d. Payment to the Kentucky Nursing Incentive Scholarship Fund: $500,000

(Kindred will not take this payment as a charitable deduction)

e. Payment to the Kentucky Department of Medicaid Services: $357,752.28

f. Payment of investigative costs: $96,853.01

Also, within 30 days, Kindred will enter into a Kentucky-specific Corporate Integrity Agreement for three years on the following terms:

a. In Kentucky, Kindred will base at least one full-time equivalent clinical monitor (to be approved by the State) whose sole responsibility will be to visit and evaluate Kindred's nursing homes in Kentucky. Kindred agrees to correct all deficiencies or problems identified by the monitor, who will file confidential quarterly reports with the Commonwealth and with Kindred. The monitor's reports will be sent to the Special Prosecutor; the Office of the Attorney General of Kentucky, Medicaid Fraud Division; and the Inspector General, Cabinet for Health and Family Services.

b. Kindred agrees to have the monitor make recommendations on the hiring, salaries and retention of facility staff at all of its Kentucky nursing homes.

c. Kindred will hire four Geriatric Nurse Practitioners (GNPs) for its Kentucky nursing homes and will not seek reimbursement for their services from Medicare or KY Medicaid. The GNPs will implement improvements in the nursing homes' assessments of residents, infection control protocols, staffing levels and responses to changes in residents' medical conditions.

d. In addition to hiring GNPs, Kindred will allocate approximately $300,000.00 per year for enhanced training of direct care staff at its Kentucky facilities. Kindred will also develop a formal preceptorship program for executive directors and directors of nursing services at all of its Kentucky nursing homes.

e. Kindred nursing homes will ensure that all nurse aides become certified within four months of their date of hire.

The total estimated cost to Kindred to carry out the agreement is $3,684,605.29.



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Office of the Attorney General
State Capitol, Suite 118
Frankfort, Kentucky 40601
(502) 696-5300
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