Diversicare Announces Resolution of DOJ Investigation
February 19 2020 - 9:00AM
Diversicare Healthcare Services, Inc. (OTCQX: DVCR), a premier
provider of long-term care services, announced today that it has
resolved the investigation by the U.S. Department of Justice and
the State of Tennessee. The investigation originated from a
false claims action filed under seal in July 2012 relating to
therapy services provided prior to that date, which is also before
the current leadership team joined Diversicare. The final
settlement resolved allegations related to the Company’s practices
and policies for rehabilitation and other services, for
preadmission forms required by TennCare and for Pre-Admission
Screening and Resident Reviews required by the Medicare
program. Under the terms of the settlement, which are
consistent with the Company’s prior announcements and disclosures,
Diversicare will pay a total of $9.5 million over a five year
period and could be required to make additional payments in the
event the Company sells any of its owned facilities during this
five year period. As a part of the settlement, the Company
also entered into a Corporate Integrity Agreement with the Office
of the Inspector General that will remain in place for the five
year payment period. The Company continues to deny any
wrongdoing in connection with the matters under investigation, but
entered the settlement in order to avoid the uncertainty and
expense of litigation and in order to focus on other initiatives.
About Diversicare Healthcare Services,
Inc.
As of February 19, 2020, Diversicare provides
long-term care services to patients in 62 skilled nursing and
senior housing centers containing 7,329 licensed nursing beds. For
additional information about the Company, visit Diversicare's web
site: www.DVCR.com.
FORWARD-LOOKING STATEMENTS
The "forward-looking statements" contained in
this release are made pursuant to the safe harbor provisions of the
Private Securities Litigation Reform Act of 1995. Forward-looking
statements are predictive in nature and are frequently identified
by the use of terms such as "may," "will," "should," "expect,"
"believe," "estimate," "intend," and similar words indicating
possible future expectations, events or actions. These
forward-looking statements reflect our current views with respect
to future events and present our estimates and assumptions only as
of the date of this release. Actual results could differ materially
from those contemplated by the forward-looking statements made in
this release. In addition to any assumptions and other factors
referred to specifically in connection with such statements, other
factors, many of which are beyond our ability to control or
predict, could cause our actual results to differ materially from
the results expressed or implied in any forward-looking statements
including, but not limited to, our ability to successfully
integrate the operations of new nursing centers, as well as
successfully operate all of our existing centers, our ability to
increase census at our renovated centers, changes in governmental
reimbursement, government regulation, the impact of the recently
adopted federal health care reform or any future health care
reform, any increases in the cost of borrowing under our credit
agreements, our ability to extend or replace our current credit
facility, our ability to comply with covenants contained in those
credit agreements, our ability to renew or extend our leases at or
prior to the end of the existing lease terms, the outcome of
professional liability lawsuits and claims, our ability to control
ultimate professional liability costs, the accuracy of our estimate
of our anticipated professional liability expense, the impact of
future licensing surveys, the outcome of proceedings alleging
violations of state or Federal False Claims Acts, laws and
regulations governing quality of care or other laws and regulations
applicable to our business including HIPAA and laws governing
reimbursement from government payors, the costs of investing in our
business initiatives and development, our ability to control costs,
changes to our valuation of deferred tax assets, changes in
occupancy rates in our centers, changing economic and competitive
conditions, changes in anticipated revenue and cost growth, no
assurance that an active market for the Company’s Common Stock will
develop on OTCQX, changes in the anticipated results of operations,
the effect of changes in accounting policies as well as others. The
Company has provided additional information in its Annual Report on
Form 10-K for the fiscal year ended December 31, 2018, as well
as in its other filings with the Securities and Exchange
Commission, which readers are encouraged to review for further
disclosure of other factors. These assumptions may not materialize
to the extent assumed, and risks and uncertainties may cause actual
results to be different from anticipated results. These risks and
uncertainties also may result in changes to the Company's business
plans and prospects. Diversicare Healthcare Services, Inc. is not
responsible for updating the information contained in this press
release beyond the published date, or for changes made to this
document by wire services or Internet services.
Company Contact: |
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Investor Relations: |
James R. McKnight, Jr. |
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Kerry D. Massey |
Chief Executive Officer |
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Chief Financial Officer |
615-771-7575 |
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615-771-7575 |
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