August 20, 2007

            LANSING - Attorney General Mike Cox announced today that his Health Care Fraud Division and the United States Attorney's Office for the Eastern District of Michigan have negotiated a settlement of health care fraud allegations against Ciena Health Care Management Inc.  The settlement includes Medicare and Medicaid reimbursement of $1.25 million and a comprehensive chain-wide corporate integrity agreement (CIA).

            "This settlement is a significant step towards compelling one of the largest nursing home chains in the State to improve the quality of care in nursing homes in the City of Detroit and around the State," said Cox.  "I would like to thank United States Attorney Stephen J. Murphy.  This joint investigation by our offices is a model of state-federal cooperation.  By joining forces we were able to improve the care for nursing home residents in these facilities."

            "This successful lawsuit represents a team effort that resulted not only in a monetary settlement, but ensures - through the use of a corporate integrity agreement - that this corporation will not engage in this kind of behavior again," said Janet Olszewski, Director of the Michigan Department of Community Health.  "Health care providers that would choose to take advantage of our society's most vulnerable citizens - particularly those in their own nursing facilities - will ultimately pay a high cost."

            Ciena Health Care Management is located in Southfield, Michigan and manages 30 long-term care/skilled nursing facilities that provide health care services to Medicare and Medicaid beneficiaries in Michigan.  Three Ciena corporate officials are also parties to the settlement:

• Mohammad Qazi, the owner of Ciena;

• Anis Khan, Ciena's chief financial officer; and

• Denise Mahnke-Pugh, Ciena's chief operating officer.

            The joint investigation by the Attorney General and the United States Attorney focused on four of Ciena's 30 nursing homes:

• St. James Nursing Center, 15063 Gratiot Ave., Detroit, MI 48205, http://stjames.cienafacilities.com;

• Americare Convalescent Center of Detroit, 19211 Anglin Rd., Detroit, MI 48234, http://americare.cienafacilities.com;

• Qualicare Nursing Home, 695 East Grand Blvd., Detroit, MI 48207, http://qualicare.cienafacilities.com; and

• Northfield Place, 8633 North Main St., Whitmore Lake, MI 48189, http://northfield.cienafacilities.com.

            The total of $1.25 million to be paid by Ciena will be divided between the United States and the State according to the average state/federal Medicaid contributions, i.e. $542,112.00 (43.37%) State, and $707,875.00 (56.63%) federal. 

            In addition, Ciena has agreed to a chain-wide, five-year corporate integrity agreement that is designed to improve the care provided by all of the Ciena facilities.  The CIA is expected to cost Ciena as much as $500,000 each year and will subject all of its operations to the scrutiny of a monitor. 

            Since the Attorney General restructured the Health Care Fraud Division the Attorney General's office has recovered $75.5 million between January 2003 and July 2007.

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