Plaintiff alleges breach of contract against skilled nursing operator

Select Rehabilitation, LLC has taken legal action against Hillstone Healthcare, Inc., alleging a significant breach of contract. The complaint was filed on January 29, 2026, in the United States District Court for the Southern District of Ohio. Select Rehabilitation accuses Hillstone Healthcare of failing to pay over $427,454.96 for therapy services provided to residents in various skilled nursing facilities operated by Hillstone.

The case centers around a series of Therapy Services Agreements (TSAs) initially entered into by CHS Therapy, LLC with multiple healthcare facilities managed by Hillstone. These agreements stipulated that CHS would provide licensed therapists to deliver rehabilitation services at these facilities. In return, the facilities were required to compensate CHS according to an agreed fee schedule. However, in 2019, CHS assigned its rights under these agreements to Select Rehabilitation following the sale of its assets. Despite this assignment and continued provision of services by Select, Hillstone allegedly failed to fulfill its payment obligations.

In March 2023, Hillstone acknowledged its debt through a Payment Plan Agreement but subsequently defaulted on this arrangement as well. Select contends that despite repeated demands for payment and discussions with Hillstone regarding outstanding invoices, no payments have been made. Moreover, it is alleged that Hillstone has been reimbursed by Medicare or other third-party payors for services rendered by Select but has not passed these funds on as payment.

Select’s lawsuit includes claims for breach of contract, unjust enrichment, action on account, and conversion. They argue that retaining the benefits from the therapy services without compensation constitutes unjust enrichment and conversion since Hillstone unlawfully holds funds owed to Select. As part of their relief sought from the court, Select requests damages exceeding $427,454.96 plus interest and costs associated with legal fees.

Representing Select Rehabilitation are attorneys Rebecca E. Shope and Jeff M. Smith from Shumaker, Loop & Kendrick LLP. The case is identified as Case No.: 2:26-cv-00104-MHW-CMV but does not list a specific judge presiding over it yet.