Vibra Healthcare Resolves Department of Justice Investigation

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Vibra Healthcare Resolves Department of Justice Investigation

September 28, 2016

For Immediate Release

Vibra Healthcare Resolves Department of Justice Investigation

Mechanicsburg, PA – September 28, 2016 – Vibra Healthcare, which operates freestanding specialty acute care hospitals and inpatient medical rehabilitation hospitals in 15 states, announced today that it has entered into a voluntary civil settlement agreement with the United States Department of Justice and the United States Department Health and Human Services, Office of Inspector General to resolve an investigation by the government and to dismiss a False Claims Act case filed by a whistleblower in federal court.    

Vibra Healthcare fully cooperated throughout the investigation, and agreed to resolve the allegations by way of a civil settlement, with neither an admission nor determination of liability. Vibra Healthcare denies any wrong doing  and believes its hospitals acted in accordance with all applicable regulations.  The settlement agreement reflects Vibra Healthcare’s desire to resolve the investigation, which began in 2011, and to avoid the significant expense and distraction of a prolonged legal battle.  Under the terms of the settlement agreement, Vibra Healthcare will pay $32.7 million in resolution of the investigation and related lawsuit. 

As is customary at the conclusion of government investigations, Vibra Healthcare has entered into a five-year Corporate Integrity Agreement that will be incorporated into the company’s existing and comprehensive compliance program.  Vibra Healthcare established the compliance program on its own initiative in 2004 and has since maintained robust training, reporting and review processes.  

Commenting on the settlement agreement, Brad Hollinger, founder, chairman and chief executive officer of Vibra Healthcare stated, “Vibra Healthcare is dedicated to compliance and meeting the highest ethical standards. Our hospitals are committed to making the best decisions possible in determining a patient’s admission and discharge, which is based upon the medical necessity of the patient as determined by the patient’s physician.  We are continuously working to strengthen our compliance program while providing excellent clinical care to the patients we serve.  We are pleased to have resolved this matter which enables Vibra to focus all of its resources on delivering exceptional care to our patients and restoring their lives to their full potential.”

This investigation reflects the challenges specialty acute care hospitals  and inpatient medical rehabilitation hospitals face in navigating highly complex reimbursement laws and regulations.  Vibra Healthcare, among other specialty acute care hospitals and inpatient medical rehabilitation hospitals and institutions, has voiced concerns regarding the complexity, ambiguity and uncertainty included in Medicare reimbursement regulations, especially those addressing hospital admissions and continued stays.  

About Vibra Healthcare

Vibra Healthcare, LLC is a hospital provider based in Mechanicsburg, PA that is focused on the development, acquisition and operation of freestanding specialty acute care hospitals, medical rehabilitation hospitals and outpatient physical rehabilitation centers. Teams of highly trained specialists lead clinical programs at Vibra’s specialty hospitals for treating medically complex patients who suffer from major orthopedic, neurologic, stroke, multiple traumas, cardiac and respiratory conditions. Vibra and its affiliates currently employ over 6,700 employees and own and operate 44 specialty hospitals, transitional care units/facilities and hospital-based outpatient physical therapy locations in 15 states. For additional information about Vibra Healthcare and its network of specialty hospitals and its post-acute care continuum, please visit our website at

Vibra Healthcare, LLC Contact:
Brad Hollinger, Chief Executive Officer
Office: 717-591-5700