Select Rehabilitation Lawsuit

Capstick’s lawsuit against Select Rehabilitation for unpaid overtime wages is still under review in New York’s Southern District Court. Michael Capstick filed the lawsuit accusing Select Rehabilitation LLC of violating the Fair Labor Standards Act (FLSA). The key concerns are the company’s unpaid overtime wages and improper labor practices.

Parties Involved: The plaintiff, Michael Capstick, alleges that his former employer, Select Rehabilitation LLC, hasn’t paid him the overtime wages he’s due. Michael Borrelli represents Capstick in this case.
Cause of Action: Capstick asserts that Select Rehabilitation violated the FLSA by failing to properly compensate him for his overtime work.
Relief Being Sought: Capstick, through his attorney Borrelli, seeks compensation for unpaid overtime wages. Additionally, he demands changes in company policies to ensure fair labor practices.
Current Status: The lawsuit is ongoing, with a jury demand in place. The Southern District of New York is currently reviewing the case.

Select Rehabilitation Lawsuit explanation

Table of Contents

Select Rehabilitation, a significant player in the rehabilitation sector, operates in 33 states with contracts in over 600 medical facilities, predominantly skilled nursing facilities. They’re currently under the microscope for allegedly billing for unnecessary or non-provided therapy services.

The case was filed as a qui tam action under the False Claims Act by two relators, Goebel and Coleman. They contend that Select Rehabilitation systematically billed Medicare for services that were either not required or not provided. In essence, the heart of the lawsuit lies in the accusation of fraudulent billing, which is a serious violation of the False Claims Act.

Parties involved

Key players in the Select Rehabilitation lawsuit include entities like Select PT, OT, & SLP Rehabilitation New York PLLC and individuals such as Michael Capstick and Anna Gardina Wolfe. Select Rehabilitation LLC is another party involved in the lawsuit.

Michael Capstick’s role is yet to be clarified, but given his prominence, it’s likely he’s a significant player. If not directly involved, he may be representing one of the parties. The same could be said for Anna Gardina Wolfe, another individual whose role isn’t entirely clear yet but is undoubtedly crucial to the case.

The attorney figure here is Michael Borrelli.

The cause of action

Select Rehabilitation stands accused of billing Medicare and Medicaid for therapy services that were either unnecessary or not provided at all. This dishonest practice got the attention of the law and subsequently triggered the lawsuit.
Two employees, Michael Goebel and William Coleman, initiated the legal action in the District of Maryland. They courageously stepped forward to blow the whistle on these alleged fraudulent billing practices.

Relief being sought

In seeking justice, the former and current program managers and therapists at Select Rehabilitation, Inc. are battling for the recovery of unpaid overtime wages. This lawsuit stems from allegations of employees working off the clock without pay and the pressure to meet productivity requirements, often leading to extra hours of unpaid work.

The claimants, joined by other present and former employees, are potentially aiming for national class certification, making this lawsuit even more significant. It’s a fight against wage violations that have reportedly been overlooked for far too long.

In the mix of this legal battle, the relief being sought isn’t just the recovery of unpaid overtime wages but also the assurance of legal remedies for these wage violations. It’s a fight for justice, for acknowledgment of the hard work the employees have put in, and for the compensation they rightfully deserve.

Key events and timeline

The saga began with the initiation of Civil Action 19-3277. This was the second of four qui tam actions under the False Claims Act (FCA) involving Select Rehabilitation and operators of various skilled nursing facilities (SNFs).
The lawsuit’s charges were centered on Select Rehabilitation billing Medicare and Medicaid for unnecessary therapies or therapies that weren’t provided at all. The company, with contracts in over 600 medical facilities across 33 states, found itself under intense scrutiny.
Legal complexities emerged around the first-to-file rule and the addition of new defendants. Allegations of multiple conspiracies involving Select Rehabilitation were brought into the spotlight.
The case underwent a series of twists and turns. Claims under Maryland law were dismissed without prejudice on April 4, 2023, following the state’s decision not to intervene. This decision was based on Md. Code Ann., Health-Gen. 2-604(a)(7).
The transfer of the case to a court where a related case was already pending was another key event. This resulted from the legal actions initiated by Relators Goebel and Coleman and impacted overall case development and court decisions.

Key arguments

The plaintiffs accuse Select Rehabilitation of using productivity requirements as a scheme to avoid paying overtime wages, essentially pressuring employees to work off the clock without pay. The productivity requirements implemented by the company allegedly coerced employees, including therapy assistants, into carrying out their duties without remuneration for their overtime hours.

The allegations don’t stop at unpaid wages. The lawsuit also claims that Select Rehabilitation retaliated against employees who raised concerns about these practices. This retaliation was purportedly aimed at silencing those who dared to question the legality of the company’s labor practices

Current status

While the legal battle continues to raise concerns about labor practices, it’s important to note that the lawsuit against Select Rehabilitation is still in progress as of February 5, 2024. This ongoing lawsuit, identified as Manzella v. Select Rehabilitation LLC, was initially filed in the Southern District of New York on February 1, 2023.

Implications

In light of these recent developments, it’s clear that the lawsuit’s implications are far-reaching and complex. The dismissal of claims under Maryland law has shaped the case’s journey significantly. Maryland’s decision not to intervene led to a dismissal without prejudice, an action that has broad implications for future proceedings.

The allegations against Select Rehabilitation, involving fraudulent billing practices for unnecessary therapies, have triggered a serious government investigation. This paints a picture of potential systemic issues within the healthcare sector, making this case a pressing concern for many.

Relators Goebel and Coleman’s involvement has added another layer to the case. Their initiation of the lawsuit led to its transfer to a court where a related case was already pending.

The ongoing government investigation has also delayed the legal proceedings, as the cases remained under seal during this period.