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A Eugene nursing home will pay $2 million to settle allegations of fraudulently billing Medicare and Medicaid while delivering inadequate care, according to the U.S. Attorney's Office.

A Eugene nursing home and its parent company agreed to pay $2 million to settle allegations of fraudulently billing Medicare and Oregon Health Plan while delivering substandard care, the U.S. Attorney’s Office announced July 1.

Avamere Riverpark of Eugene “is alleged to have provided grossly substandard services to Medicare and Medicaid beneficiaries who resided at the facility when staffing levels did not meet minimum staffing requirements,” the U.S. Attorney’s Office said in a statement.

Federal prosecutors had said the company’s “failure to adequately staff the facility resulted in residents experiencing increased instances and severity of preventable urinary tract infections, pressure sores and falls.”

The civil settlement resolves allegations that the 119-bed nursing home at 425 Alexander Loop fraudulently billed Medicare and OHP, also known as Oregon Medicaid, during November and December 2017 and between September 2018 and July 2019.

Avamere Riverpark and parent company Avamere have also entered into a five-year Quality-of-Care Corporate Integrity Agreement with the U.S. Department of Health and Human Services Office of Inspector General as part of the settlement. Such agreements require that a company retain an outside entity to conduct “quality-related reviews,” according to the inspector general’s office.

The most recent state data for the nursing home shows that by Dec. 30 of last year, the facility “was found to be in substantial compliance” with care requirements, after 16 deficiencies were found in an October inspection.

Avamere, based in Wilsonville, runs 33 skilled nursing facilities in Oregon and Washington, according to its website.

Mary Kofstad, Avamere’s chief executive officer, said in a statement the company is “pleased to put this matter behind us.”

“We have already made leadership changes and significant investments in our people and compliance programs, and we are confident that we are well prepared to comply with the terms of the corporate integrity agreement,” she said. “Providing quality care which complies with federal and state regulations is and will always be our top priority.”