Health Services Management Inc., a company that owns nursing homes throughout Texas and other parts of the country, has reportedly paid $5 million to settle claims regarding negligent care and abuse in nursing homes, according to a Law360 report.

HSM, which was not required to admit liability under the settlement, was accused of not only providing subpar services to its nursing home’s residents at Huntsville nursing home but also of billing Medicare and Medicaid for services that were either not provided or so poor and substandard that they were deemed worthless.

Whistleblower Susan A., the former marketing director at the Huntsville nursing home, exposed the allegedly negligent provision of care and nursing home abuse. She alleged, in a 2015 lawsuit, that abuse in nursing homes run by HSM consisted of patients not being properly diagnosed or treated when they had infections, that patients were improperly bathed, that patients were not being taken to bathrooms when needed, and patient abuse in the nursing homes included not having their clothes cleaned.

To hide these acts, Susan alleges that the nursing home executives of changed “grievance reports to cover up mistreatment” and concealed patient complaint reports.

According to Law360, Texas and federal prosecutors verified her claims and found HSM had falsely billed Medicare and Medicaid for subpar services or for services that were never rendered between Jan. 1, 2013 to Dec. 31, 2015.

C.J. Porter of the U.S. Department of Health and Human Services’ Office of Inspector General said in a statement, “It’s disturbing when a nursing home company accepts Medicare and Medicaid money to care for vulnerable nursing home residents and in return provides substandard care, as alleged in this case.” He added, “We will continue to hold nursing homes accountable to give residents the quality health services, and living conditions, taxpayers pay them to provide.”

Acting U.S. Attorney Abe Martinez stated, “We take seriously the care of our most vulnerable citizens, the elderly and infirm.” He added, “When providers accept federal funds for reimbursement, they have a duty and responsibility to provide the best care possible to the patient, especially when those patients are elderly and at times incapacitated.”

As part of the settlement claim, HSM also entered a corporate integrity agreement with the DHHS-OIG. Whistleblower Susan will be paid $1 million for reporting the negligent care abuse in nursing homes violations, and the state of Texas will receive roughly $1.05 million for the settlement amount covering the Medicaid portion.

HSM’s attorney told Law360 that the company’s decision to settle the claim was only a business decision and that the company is glad to put the matter to rest.

Susan’s attorney says the abuse in nursing homes claims filed against HSM were “never about the money.” Rather, he says “Both of us were concerned about putting a stop to the issues that were going on at that facility.”

Susan alleges that after filing the abuse in nursing homes HSM complaint, she was fired and mistreated after reporting her concerns about patient negligent care and fraudulent billing to Medicare and Medicaid. According to Susan’s attorney, there will be a separate settlement for the alleged retaliatory acts executed by HSM.