September 26, 2006  Horizon West Inc.

Horizon West Inc., and its wholly owned subsidiary, Horizon West Healthcare Inc. have agreed to pay $14.7 Million Dollars to settle qui tam claims filed by a former employee, Julia Lee.

The California based companies operate a chain of nursing home with approximately 30 facilities in California and Utah.  The allegations of the qui tam case were that the companies falsely inflated the number of nursing hours spent on Medicare patients when reporting their costs to Medicare from 1991 to 1998.

Under the False Claims Act, Ms. Lee is expected to receive up to $3.6 Million for having filed the qui tam action.

See U.S. Dept of Justice Press Release 9/26/06

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