Nursing home operator Centers Health Care has reached a significant settlement of $45 million with the State of New York, following serious allegations of financial misconduct and neglect that left vulnerable residents in dire conditions. The announcement was made by New York Attorney General Letitia James, who emphasized the need for accountability and reform in the nursing home industry.
The lawsuit, filed in June 2023, accused Centers Health Care and its owners, Kenneth Rozenberg and Daryl Hagler, of misappropriating over $83 million in Medicare and Medicaid funds intended for patient care. Instead of using these resources to provide adequate staffing and essential services, the company allegedly engaged in a complex web of fraudulent schemes to enrich themselves. This included inflated rents, unnecessary loans, and phony fees paid to companies they controlled.
As part of the settlement, $35 million will be allocated directly to enhance patient care and staffing levels across four nursing homes operated by Centers Health Care: Beth Abraham Center, Buffalo Center, Holliswood Center, and Martine Center. The remaining funds will reimburse Medicare and Medicaid programs for the misappropriated funds. Additionally, the settlement mandates the appointment of independent monitors to oversee both medical care and financial practices at these facilities.
Attorney General James stated, “Residents suffered tragic harm and their families were often left in despair about their loved ones. This settlement ensures that Centers Health Care will be held accountable for their actions while also implementing major reforms to protect residents moving forward.”
In response to the settlement, Centers Health Care expressed satisfaction with resolving the litigation, asserting that it dismisses all allegations of wrongdoing. The company highlighted its long-standing commitment to providing quality care to thousands of residents across its facilities.
This landmark case underscores the critical need for transparency and accountability in nursing home operations. As New York continues to confront challenges within its healthcare system, this settlement serves as a pivotal step toward safeguarding the rights and well-being of nursing home residents.
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