New York nursing home operator to pay $45 million over claims it stole funds, neglected care
Adds statement from Centers Health Care in paragraph 5
By Brendan Pierson
Nov 14 (Reuters) -Nursing home operator Centers Health Care, its owners and related entities have agreed to pay $45 million to settle a lawsuit by New York accusing them of stealing government funds while understaffing facilities, resulting in widespread neglect, illness and death among residents.
The settlement, announced by New York Attorney General Letitia James on Thursday, also provides for an independent, court-appointed medical monitor and a separate financial monitor to oversee the Bronx, New York-based company's operations.
$35 million will go directly to improve patient care, with most of the rest of the money going to reimburse Medicare and Medicaid, the federal and state-run government health insurance programs.
"Residents suffered tragic harm and their families were often left in the dark or in despair about their loved ones," James said in a statement. "Now, Centers and its owners will pay for the harm they caused and will continue to make major reforms at their facilities to ensure residents receive the care they deserve."
"We are pleased to resolve our litigation, which dismisses all allegations of wrongdoing against Centers," Centers Health Care said in a statement. "Over the last three decades, Centers has cared for thousands of residents across dozens of facilities, while maintaining the highest standards of care and resident welfare."
James sued Centers Health Care in June 2023, accusing the company and its owners, Kenneth Rozenberg and Daryl Hagler, of using a complex network of companies and sham contracts to pocket $83 million in Medicare, Medicaid and other funding meant for patient care over the last decade.
Meanwhile, residents at four New York facilities suffered horrific neglect and mistreatment, according to the lawsuit. Among numerous examples cited in the complaint are a man who died of sepsis from an untreated bedsore; a woman who suffered brain damage after falling out of bed and receiving no treatment; and a man with dementia who left a facility unsupervised.
James alleged that during the COVID-19 pandemic, Centers Health Care facilities failed to provide masks to staff or follow infection control measures, contributing to more than 400 deaths at the four facilities in 2020.
Centers Health Care at the time denied the allegations.
The case is People of the State of New York v. Abraham Operations Associates et al, Supreme Court of the State of New York, County of New York, No. 451549/2023.
For the state: Amy Held of the Attorney General's office
For defendants: Motty Shulman of Centricity Law and Sean Doolan of Hinman Straub
Read more:
Nursing home owners stole $83 million while neglecting residents, New York lawsuit says
(Reporting By Brendan Pierson in New York)
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