Cretney-Tsosie, et al. v. Creekside Hospice II, LLC, et al.

Filing 185

ORDER granting 184 Motion to Stay this case in its entirety until 4/28/2017. Signed by Judge Andrew P. Gordon on 2/23/2017. (Copies have been distributed pursuant to the NEF - JM)

Case 2:13-cv-00167-APG-PAL Document 184 Filed 02/23/17 Page 1 of 10

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Kathleen McDermott (pro hac vice)
Attorney in Charge
Howard Young (pro hac vice)
Lucas Elliot (pro hac vice)
Clayton Morton (pro hac vice)
John Cosgriff (pro hac vice)
MORGAN LEWIS & BOCKIUS LLP
1111 Pennsylvania Avenue, NW
Washington, DC 20004
T 202.739.3000 | F 202.739.3001
Email: [e-mail]
Charles H. McCrea (SBN #104)
HEJMANOWSKI & MCCREA LLC
520 S. 4th St., Ste. 320
Las Vegas, NV 89101
T 702.834.8777 | F 702.834.5262
Email: [e-mail]
Attorneys for CREEKSIDE HOSPICE II, LLC,
SKILLED HEALTHCARE GROUP INC. and
SKILLED HEALTHCARE, LLC
UNITED STATES DISTRICT COURT
DISTRICT OF NEVADA

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UNITED STATES OF AMERICA, et al.,

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Case No.: 2:13-cv-00167-APG-PAL

Plaintiffs,

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v.

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CREEKSIDE HOSPICE II, LLC, et al.,

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Defendants,

JOINT STATUS REPORT

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AND ALL RELATED ACTIONS.

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Plaintiffs United States of America, Joanne Cretney-Tsosie, and Veneta Lepera and

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Defendants Creekside Hospice II, LLC, Skilled Healthcare Group, Inc., and Skilled Healthcare,

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LLC (all hereinafter referred to as “Creekside”), submit the foregoing Joint Status Report

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MORGAN, LEWIS &
BOCKIUS LLP
ATTORNEYS AT LAW
WASHINGTON D C

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Case 2:13-cv-00167-APG-PAL Document 184 Filed 02/23/17 Page 2 of 10

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pursuant to the Court’s September 2, 2016 Order (Dkt. #162) and the Court’s November 7, 2016

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Order granting the parties’ Joint Motion to Stay Action Until February 28, 2017. (Dkt. #183).1

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I.

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This action is brought by the United States and Relators Joanne Cretney-Tsosie and

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Background and Status of Discovery

Veneta Lepera under the False Claims Act against a hospice provider, Creekside Hospice, and its

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corporate parent, Skilled Healthcare. The gravamen of the action is that Creekside violated the

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False Claims Act by knowingly submitting or causing the submission of false claims to Medicare

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for reimbursement for hospice services for patients who were ineligible for coverage in the time

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period 2010 to 2013. These allegations are disputed and Creekside filed a motion to dismiss the
action in August 2015. (Dkt. #98).2 Discovery commenced in June 2015 and is not completed by
the parties. There is no Scheduling Order in this action. The parties’ unresolved discovery
disputes are set forth in Status Reports that were filed in September 2015. (Dkt. #111-13). A

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temporary stay against depositions of current and former employees was granted by the Court in

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September 2015, and no expert discovery has occurred. (Dkt. #114).

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Throughout 2016, the United States and Creekside engaged in significant and productive
discussions pertaining to settlement of the action. The parties filed a Joint Unopposed Motion to
Stay Action for Ninety Days Pending Settlement Discussions on June 2, 2016 (Dkt. #159). The
Court granted that Motion on June 15, 2016. (Dkt. #160). On September 1, 2016, the parties filed

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a joint Motion to Continue Stay until November 15, 2016 (Dkt. #161), which the court granted on

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September 2, 2016 (Dkt. #162). On November 7, 2016, the Court extended the stay until January

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6, 2017. (Dkt. #173). On January 6, 2017, the Court extended the stay until February 28, 2017.

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Counsel for Relator Lepera has not replied when asked to approve the final version of this Status Report.
In light of the parties’ agreement in principle to settle the dispute, the Court dismissed without prejudice
Creekside’s Motion to Dismiss as moot. (Dkt. #162).

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Case 2:13-cv-00167-APG-PAL Document 184 Filed 02/23/17 Page 3 of 10

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(Dkt. 183). The parties seek an additional stay to April 28, 2017 to finalize the settlement

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documents related to this action.

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II.

Settlement Agreement and Other Outstanding Issues

The United States and Creekside have reached an agreement in principle pertaining to
settlement of the action. The parties need additional time to obtain the necessary approvals for

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the proposed settlement, including the approval of the Acting Assistant Attorney General for the

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Civil Division and the United States Attorney for the District of Nevada.

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In addition, Relator Cretney-Tsosie and Defendants are currently negotiating Relator’s
statutory attorneys’ fees and costs pursuant to 31 U.S.C. § 3730(d). If these negotiations are not
successfully concluded by the time the action is dismissed, Relator Cretney-Tsosie will file a
motion for attorneys’ fees consistent with Local Rule 54-14.
Finally, in the event Relator Cretney-Tsosie and the Government are unable to reach an

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agreement as to the percentage for her relator’s award pursuant to 31 U.S.C. § 3730(d), Relator

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Cretney-Tsosie will file a motion with the Court to resolve the share issue.

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III.

Motion to Continue the Court’s November 7, 2016 Order Staying this Action

The parties respectfully request that the Court continue its stay until April 28, 2017 in
order to give the parties time to obtain the necessary approvals for the proposed settlement and to
execute the agreement and submit dismissal papers to the Court. The parties request that the stay

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exclude adjudication of Plaintiff/Relator Cretney-Tsosie’s Motion to Dismiss the Complaint of

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Plaintiff/Relator Lepera (“Motion to Dismiss”) (Dkt. 166), which is now fully briefed and raises

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an issue that will not be resolved by the Settlement Agreement. A stay will assure that the Court

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does not engage in case activity unnecessarily and will reduce the burden and expense of the

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ATTORNEYS AT LAW
WASHINGTON D C

litigation process for the parties. A Motion to Continue Stay Until April 28, 2017 and proposed
order accompanies this Joint Status Report.
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Case 2:13-cv-00167-APG-PAL Document 184 Filed 02/23/17 Page 4 of 10

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Dated: February 23, 2017

Respectfully submitted,
Counsel for Defendants Creekside Hospice II,
LLC, Creekside Home Care II, LLC, Skilled
Healthcare Group, Inc. and Skilled Healthcare,
LLC.
/s/ Kathleen McDermott
Kathleen McDermott (pro hac vice)
Attorney in Charge
Howard Young (pro hac vice)
Lucas Elliot (pro hac vice)
Clayton Morton (pro hac vice)
John Cosgriff (pro hac vice)
MORGAN LEWIS & BOCKIUS LLP
1111 Pennsylvania Avenue, NW
Washington, DC 20004
T 202.739.3000 | F 202.739.3001
Email: [e-mail]
Charles H. McCrea (SBN #104)
HEJMANOWSKI & MCCREA LLC
520 S. 4th St., Ste. 320
Las Vegas, NV 89101
T 702.834.8777 | F 702.834.5262
Email: [e-mail]
Counsel for Plaintiff
CHAD A. READLER
Acting Assistant Attorney General
DANIEL G. BOGDEN
United States Attorney

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/s/ Roger Wenthe
ROGER WENTHE
Assistant United States Attorney
MICHAEL D. GRANSTON
ANDY MAO
MICHAEL PODBERESKY
Attorneys, Civil Division

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Counsel for the Relator

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L. Timothy Terry (NV Bar #2341)
[e-mail]
The Terry Law Firm, Ltd.
102 N. Curry Street
Carson City, NV 89703
775.291.9071

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MORGAN, LEWIS &
BOCKIUS LLP
ATTORNEYS AT LAW
WASHINGTON D C

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Steven Cohen (pro hac vice)
[e-mail]
Cohen Law Group
70 West Madison Street, Suite 4000
Chicago IL 60602
312.327.8800
Matthew J. Piers (pro hac vice)
[e-mail]
Joshua Karsh (pro hac vice)
[e-mail]
Juliet Berger-White (pro hac vice)
[e-mail]
Caryn Lederer
[e-mail]
Hughes Socol Piers Resnick & Dym, Ltd.
Three First National Plaza
70 West Madison Street, Suite 4000
Chicago, Illinois 60602
312.580.0100
By: /s/
Juliet Berger-White
Attorneys for Plaintiff/Relator Joanne
Cretney-Tsosie

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Ruth L. Cohen, Esq. (NV Bar No: 1782)
Email: [e-mail]
Paul S. Padda, Esq. (NV Bar No. 10417)
Email: [e-mail]
PAUL PADDA LAW, PLLC
4240 West Flamingo Road, Suite 220
Las Vegas, Nevada 89103
Tel: [phone]
Fax: [phone]
By: /s/
Paul S. Padda
Attorneys for Relator Veneta Lepera

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ATTORNEYS AT LAW
WASHINGTON D C

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Case 2:13-cv-00167-APG-PAL Document 184 Filed 02/23/17 Page 6 of 10

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Kathleen McDermott (pro hac vice)
Attorney in Charge
Howard Young (pro hac vice)
Lucas Elliot (pro hac vice)
Clayton Morton (pro hac vice)
John Cosgriff (pro hac vice)
MORGAN LEWIS & BOCKIUS LLP
1111 Pennsylvania Avenue, NW
Washington, DC 20004
T 202.739.3000 | F 202.739.3001
Email: [e-mail]
Charles H. McCrea (SBN #104)
HEJMANOWSKI & MCCREA LLC
520 S. 4th St., Ste. 320
Las Vegas, NV 89101
T 702.834.8777 | F 702.834.5262
Email: [e-mail]
Attorneys for CREEKSIDE HOSPICE II, LLC,
SKILLED HEALTHCARE GROUP INC. and
SKILLED HEALTHCARE, LLC
UNITED STATES DISTRICT COURT
DISTRICT OF NEVADA

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UNITED STATES OF AMERICA, et al.,

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Case No.: 2:13-cv-00167-APG-PAL

Plaintiffs,

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CREEKSIDE HOSPICE II, LLC, et al.,

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JOINT MOTION TO CONTINUE STAY
UNTIL APRIL 28, 2017

v.

Defendants,

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AND ALL RELATED ACTIONS.

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Plaintiffs United States of America, Joanne Cretney-Tsosie and Defendants Creekside
Hospice II, LLC, Skilled Healthcare Group, Inc., and Skilled Healthcare, LLC (all hereinafter

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MORGAN, LEWIS &
BOCKIUS LLP
ATTORNEYS AT LAW
WASHINGTON D C

referred to as “Creekside”), jointly move to continue the stay in this action until April 28, 2017,
except for the Court’s adjudication of Plaintiff/Relator Cretney-Tsosie’s Motion to Dismiss the
Complaint of Plaintiff/Relator Lepera (“Motion to Dismiss”), (Dkt. 166), which is fully briefed,
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Case 2:13-cv-00167-APG-PAL Document 184 Filed 02/23/17 Page 7 of 10

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based upon an agreement in principle between the United States and Creekside to settle this

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action, subject to approval of Department of Justice officials. A stay will allow the parties to

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execute the agreement and file the necessary paperwork with the Court to dismiss the action.
This stay will prevent additional burden on the Court and unnecessary burden and expense to the
parties. All parties to the action consent to the request for a stay.
WHEREFORE, Plaintiffs United States of America, et al., and Defendants’ Creekside
Hospice, et al., move this Honorable Court to:
A.

Grant their Joint Motion to Continue Stay; and

B.

Enter an order staying this case in its entirety until April 28, 2017.

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Dated: February 23, 2017

Counsel for Defendants Creekside Hospice II,
LLC, Creekside Home Care II, LLC, Skilled
Healthcare Group, Inc. and Skilled Healthcare,
LLC.

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Respectfully submitted,

IT IS SO ORDERED.
________________________________
UNITED STATES DISTRICT JUDGE
Dated: February 23, 2017.

/s/ Kathleen McDermott
Kathleen McDermott (pro hac vice)
Attorney in Charge
Howard Young (pro hac vice)
Lucas Elliot (pro hac vice)
Clayton Morton (pro hac vice)
John Cosgriff (pro hac vice)
MORGAN LEWIS & BOCKIUS LLP
1111 Pennsylvania Avenue, NW
Washington, DC 20004
T 202.739.3000 | F 202.739.3001
Email: [e-mail]

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Charles H. McCrea (SBN #104)
HEJMANOWSKI & MCCREA LLC
520 S. 4th St., Ste. 320
Las Vegas, NV 89101
T 702.834.8777 | F 702.834.5262
Email: [e-mail]

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Counsel for Plaintiff

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CHAD A. READLER
Acting Assistant Attorney General

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MORGAN, LEWIS &
BOCKIUS LLP
ATTORNEYS AT LAW
WASHINGTON D C

DATED: _________________________

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Case 2:13-cv-00167-APG-PAL Document 184 Filed 02/23/17 Page 8 of 10

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DANIEL G. BOGDEN
United States Attorney

/s/ Roger Wenthe
ROGER WENTHE
Assistant United States Attorney
MICHAEL D. GRANSTON
ANDY MAO
MICHAEL PODBERESKY
Attorneys, Civil Division

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Counsel for the Relator
L. Timothy Terry (NV Bar #2341)
[e-mail]
The Terry Law Firm, Ltd.
102 N. Curry Street
Carson City, NV 89703
775.291.9071
Steven Cohen (pro hac vice)
[e-mail]
Cohen Law Group
70 West Madison Street, Suite 4000
Chicago IL 60602
312.327.8800
Matthew J. Piers (pro hac vice)
[e-mail]
Joshua Karsh (pro hac vice)
[e-mail]
Juliet Berger-White (pro hac vice)
[e-mail]
Caryn Lederer
[e-mail]
Hughes Socol Piers Resnick & Dym, Ltd.
Three First National Plaza
70 West Madison Street, Suite 4000
Chicago, Illinois 60602
312.580.0100
By: /s/
Juliet Berger-White
Attorneys for Plaintiff/Relator Joanne
Cretney-Tsosie

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MORGAN, LEWIS &
BOCKIUS LLP
ATTORNEYS AT LAW
WASHINGTON D C

Ruth L. Cohen, Esq. (NV Bar No: 1782)
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Email: [e-mail]
Paul S. Padda, Esq. (NV Bar No. 10417)
Email: [e-mail]
PAUL PADDA LAW, PLLC
4240 West Flamingo Road, Suite 220
Las Vegas, Nevada 89103
Tel: [phone]
Fax: [phone]
By: /s/
Paul S. Padda
Attorneys for Relator Veneta Lepera

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ATTORNEYS AT LAW
WASHINGTON D C

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