Business news in brief

Medicare claims cost Reliant Care $8M

ST. LOUIS -- A Missouri-based nursing home operator has agreed to pay $8.3 million to settle claims that it and its affiliates provided unnecessary therapy to residents and billed Medicare.

The St. Louis Post-Dispatch reported that the deal announced Wednesday resolves claims involving questioned therapy by Reliant Care Group of the St. Louis suburb of Maryland Heights from January 2008 to April 2014.

As part of the settlement with the federal government, Reliant denied submitting false claims.

The company said it cooperated in the investigation and that it "is very satisfied with the result."

Reliant must pay $2.8 million within five days and the rest, with interest, within three years.

-- The Associated Press

American Airline stake Qatari's firm goal

Qatar Airways ratcheted up a war of words with American Airlines Group Inc. over the Qatari line's plans to take a stake in the carrier, with Chief Executive Officer Akbar Al Baker saying his U.S. counterpart Doug Parker is "frightened" by the proposed investment.

The Mideast company intends to buy up American Airlines stock if it's attractively priced regardless of opposition from Parker, who has dismissed the move as "puzzling at best and concerning at worst," Al Baker said Thursday in his first public comments since news of the strategy emerged last month.

"We will not impose ourselves on anybody," he said in Dublin. "However, our filing is very well-advanced, and we hope to start buying shares on the open market soon. We want to be a strategic shareholder. We're not telling them what to do."

The value that Qatari investment could bring to American will become apparent once the Mideast operator purchases the 4.75 percent stake it's able to buy without seeking approval from the Fort Worth-based company's board, Al Baker told reporters. There are no plans to go beyond a 10 percent holding and certainly not to the maximum 20 percent available to a foreign carrier, he said. Neither will there be an attempt to secure a seat on the board.

American Airlines didn't immediately respond to a request for comment.

-- Bloomberg News

30-year mortgage rate highest since May

WASHINGTON -- Long-term U.S. mortgage rates rose this week to highest level since mid-May.

Mortgage buyer Freddie Mac said Thursday that the rate on 30-year, fixed-rate mortgages rose to an average 3.96 percent from 3.88 percent last week. It stood at 3.41 percent a year ago. The rate on 15-year, fixed-rate home loans, popular with homeowners who are refinancing their mortgages, rose to 3.22 percent from 3.17 percent. A year ago, it was 2.74 percent.

Sean Becketti, Freddie Mac's chief economist, said the higher mortgage rates reflect higher global interest rates. The yield on the 10-year Treasury note, which influences mortgage rates, has risen to 2.37 percent from 2.27 percent a week ago.

Still, mortgage rates remain historically low, even though the Federal Reserve has begun to ratchet up short-term interest rates.

To calculate average mortgage rates, Freddie Mac, short for the Federal Home Loan Mortgage Corp., surveys lenders across the country between Monday and Wednesday each week. The average doesn't include extra fees, known as points, which most borrowers must pay to get the lowest rates. One point equals 1 percent of the loan amount.

The average fee for a 30-year mortgage rose to 0.6 point from 0.5 point last week. The fee on 15-year loans remained at 0.5 point.

Rates on adjustable five-year loans rose to 3.21 percent from 3.17 percent last week. The fee was unchanged at 0.5 point.

-- The Associated Press

Toyota opens new HQ for U.S. in Texas

PLANO, Texas -- Toyota on Thursday officially opened its new North American headquarters in Texas.

The $1 billion project includes a new campus in Plano, outside Dallas. The Japanese automaker plans to move thousands of employees from California and Kentucky and says it will eventually employ up to 4,000 people at the Plano site -- including about 1,000 new local hires.

Texas officials attended events Thursday to mark the move, which is part of the company's plan to bring sales, marketing, financial and other services together in one location.

Construction of the 100-acre headquarters in Plano is not yet complete, but employees have been moving in since late spring. More are expected to arrive in phases through December.

-- The Associated Press

Baskin-Robbins widens frosty delivery

More than 600 Baskin-Robbins U.S. stores are now delivering scoops of ice cream, milkshakes, sundaes and cakes to customers' front doors through DoorDash Inc.

The chain, owned by Dunkin' Brands Group Inc., had previously tested the service in about 60 locations in Los Angeles and Chicago. Now stores are on board in 22 cities, including New York, Dallas, San Francisco and Seattle.

"Convenience and immediate gratification -- they are huge customer needs," said Carol Austin, vice president of marketing at Baskin-Robbins. "Customers today want what they want, when they want it."

While many chains have moved to deliver burgers, chicken and fries, delivering ice cream has remained largely elusive. DoorDash is using insulated carriers to ensure the treats arrive intact. The only difference is that sundaes won't have whipped cream, which dissolved during the delivery time, the company found during trial runs. Baskin-Robbins stores that tested delivery also showed sales increases, Austin said. She declined to provide specific figures.

McDonald's Corp. is another fast-food brand delivering desserts to diners. The Big Mac seller said earlier this year that it was working with Uber Technologies Inc. to offer delivery across the U.S. McDonald's delivery service includes sundaes, milkshakes and McFlurry desserts, though their ice cream is the soft-serve variety rather than hard scoops.

-- Bloomberg News

Business on 07/07/2017

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