BUFFALO, N.Y. (WETM) – A Western New York-based senior care facility, with locations in Hornell and Waverly, has agreed to pay almost $1 million after it was accused of submitting false claims to Medicare and Medicaid.

Elderwood Administrative Services, LLC, is based out of Buffalo and has locations across Upstate New York, including in Hornell and Waverly. According to the U.S. Attorney’s Office for the Western District of New York, Elderwood agreed to pay $950,000 “to resolve allegations” that it submitted false claims to Medicare and Medicaid.

The false claims were allegedly submitted between August 1, 2013 and December 31, 2018. The news release that Elderwood allegedly knowingly submitted false physical, occupational, and speech therapy claims to Medicare. As a result, Elderwood received “artificially inflated payments from Medicaid”, according to the Assistant U.S. Attorney handling the case.

The allegations were first brought to light by whistleblower Jean Nolan, according to the announcement. Nolan will receive part of the settlement as part of the whistleblower provisions of the False Claims Act.

“This settlement reflects the commitment of my office to hold everyone, including healthcare providers, accountable when they seek to defraud the government,” said U.S. Attorney Trini Ross. “My office will continue to ensure that federal taxpayer dollars meant to serve Medicare and Medicaid patients are spent on needed services and we will not allow healthcare providers to become unjustly enriched when they bill for unnecessary services.”

In a statement, Elderwood said the allegations are specific to only certain locations, including Waverly, but not Hornell. The company also said “the settlement is not an admission of guilt and the former employee’s complaint remains a set of allegations and not a statement of fact.”

The company’s full statement can be read below: