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ReNew Health To Pay $7M To Settle COVID-19 FCA Claims


April 30, 2024

ReNew Health Group LLC has agreed to pay the federal government and California $7 million to settle whistleblower allegations that the healthcare provider misused a COVID-19 waiver intended to free up hospital beds by submitting fraudulent claims for nursing home residents, the U.S. Department of Justice announced Friday.

Under the deal, ReNew Health Group, ReNew Health Consulting Services LLC and two executives, Crystal Solorzano and Chaim Kolodny, will pay approximately $6.8 million to the United States and $242,273 to California to settle allegations that they violated the False Claims Act. The whistleblower, Bay Area Whistleblower Partners, will receive approximately $1.2 million after the government has received the settlement money, according to the announcement.

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The plaintiff, represented by Cohen Milstein Sellers & Toll PLLC, Senior Justice Law Firm and Zimmerman Reed LLP, alleged that ReNew Health was misusing a waiver program implemented by the Centers for Medicare & Medicaid Services in response to the COVID-19 pandemic.

Specifically, to increase the availability of hospital beds, the CMS waived the requirement that a person must have stayed in the hospital for three days before receiving skilled care in a nursing home.

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The whistleblowers’ co-lead counsel, Ray Sarola of Cohen Milstein, echoed that sentiment and said it was unfortunate that some companies tried to manipulate COVID-19 programs for their own profit.

“We are proud to represent whistleblowers who helped protect our healthcare system so that the government’s resources are available for those patients who need them,” Sarola added.

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The whistleblowers are represented by Raymond M. Sarola and Gary L. Azorsky of Cohen Milstein Sellers & Toll PLLC, David Brevda of Senior Justice Law Firm, and Chuck Toomajian of Zimmerman Reed LLP.

Read ReNew Health To Pay $7M To Settle COVID-19 FCA Claims.