Sebastopol, Petaluma nursing homes part of federal fraud case

Two Sonoma County nursing homes are part of a nursing home chain being ordered to pay the government $30 million after billing it for rehab services patients didn’t need.

The case, brought by the Department of Justice against Orange County-based North American Health Care, Inc., alleged the company submitted

false claims to the government for “medically unnecessary” therapy services.

Announced Monday, the settlement included Petaluma Care and Rehab, known now as Petaluma Post-Acute Rehab, and Sebastopol’s Apple Valley Convalescent, known now as Apple Valley Post-Acute Rehab, among the 35 nursing homes.

North American Health Care, Inc. executives continued billing the government for the medically unnecessary therapy services until December 2011 at its Sebastopol and Petalumalocations, as well as a nursing home in Pacifica.

Of the $30 million to be repayed to the government, $28.5 million will be paid by North American Health Care, Inc., $1 million will be paid by Chairman John Sorenson and $500,000 will be paid by the senior vice president of reimbursement analysis, the Justice Department said.

You can reach Staff Writer Christi Warren at 521-5205 or christi.warren@pressdemocrat.com. On Twitter @SeaWarren.