RICHMOND, Va. — A former group home operator in Gloucester has agreed to pay $2 million to settle allegations that it overbilled Virginia’s Medicaid program for nursing services it couldn’t have possibly delivered.
Federal and state investigators say Sola, Inc. submitted inflated Medicaid claims for skilled and other nursing care—charging for more hours than its nurses actually worked, based on their own time sheets.
Between the U.S. Attorney’s Office for the Eastern District of Virginia and the Virginia Attorney General’s Medicaid Fraud Control Unit, the joint investigation found that Sola overbilled the state’s Department of Medical Assistance Services (DMAS) by more than $641,000. The extra billing was tied to nursing “units” that simply didn’t match up with reality—there weren’t enough working hours to support the claims.
Sola, which no longer operates adult residential group homes, agreed to settle for $2 million in civil penalties to resolve the fraud allegations. The company did not admit wrongdoing as part of the settlement.
No criminal charges were announced, but officials emphasized that Medicaid fraud cases like this erode public trust and divert funding meant for vulnerable patients.
The case highlights how state and federal agencies are keeping a close eye on Medicaid providers—and are increasingly using data like time sheets and billing logs to catch discrepancies.