Vanguard has agreed to pay $2 million to resolve allegations that it engaged in fraudulent billing practices, including billing both Medicare and state Medicaid for services, billing for patients who no longer qualified for benefits by claiming that the patients had suffered a new episode, and billing for medical equipment it had received for free.  Vanguard also allegedly charged for a higher level of care than was necessary.  When an employee complained that such acts were illegal under Medicare laws and regulations, he was fired.  He subsequently initiated the instant case.

The company, who operates eighteen nursing homes, has signed a corporate integrity agreement.

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