A nursing home management corporation which runs 11 facilities in Iowa, including the Colonial Manor in Anita, and the Denison Care Center, has been sanctioned by the federal government for allegedly employing workers who had been barred from working in a federally funded health care facility. The Des Moines Register reports in its Sunday edition, that HCM Management has agreed to pay more than $200,800 for the violation. In a separate settlement agreement, Bethany Lutheran Home in Council Bluffs, which allegedly overbilled the government for Medicaid and Medicare claims, agreed to pay $675,000. A total of $875,000 in penalties was levied against the two nursing home groups. 

The Register reports, that in the HCM case, the Inspector General at the U-S Department of Health and Human Services alleged the company employed two persons it knew or should have known where excluded from participating in federally funded health care programs. HCM officials issued a written statement to the Register saying all persons applying for work at HCM managed properties “Undergo a rigorous background check.” 

In addition to the financial settlement with the Feds, Bethany Lutheran Home in Council Bluffs agreed to enter into a “Corporate integrity” agreement, which requires the facility to provide additional staff training in what services can be billed to Medicaid and Medicare. The 121-bed care facility is also required to create annual reports detailing efforts to ensure compliance, and submit those reports to the I-G’s office.