As I’ve written before, the real drivers of healthcare costs are not lawsuits, which studies by Johns Hopkins Medicine found are less than 1% of healthcare costs. The big costs are a result of fraud.
Kindred Healthcare, a large chain of nursing homes, will pay $125 million to settle allegations that it billed Medicare for therapy that was either unnecessary or not provided.
The case was brought forward by two whistleblowers – employees of Kindred who knew that what their company was doing was not right. You can read a full account of the case as reported by the Boston Globe.