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$45 Million Nursing Home Settlement Reached in Fraud and Neglect Case

Operators of four nursing homes have agreed to pay a $45 million New York nursing home settlement for a lawsuit accusing them of stealing government funds meant to provide care to residents. Patients at the facility allegedly suffered years of mistreatment.

Nursing home neglect is a serious problem for residents of long-term care facilities. In the New York lawsuit, accusations of neglect in a nursing home helped expose a massive case of Medicare and Medicaid fraud.

Learn more about this case and how understaffing played a major role in uncovering fraud by the owners.

Summary of the Medicaid and Medicare Fraud Case

The New York Attorney General’s investigation found that Centers for Care, LLC (Centers) engaged in financial fraud and understaffed four facilities, putting residents at risk of harm.

The four New York nursing homes are:

  • Beth Abraham Center for Rehabilitation and Nursing in Bronx County
  • Buffalo Center for Rehabilitation and Nursing in Erie County
  • Holliswood Center for Rehabilitation and Healthcare in Queens County
  • Martine Center for Rehabilitation and Nursing in Westchester County

Centers requested money from Medicare and Medicaid and then kept the funds instead of using them to hire qualified employees and provide quality care, according to New York Attorney General Letitia James.

AG James said the fraudulent activity led to a major understaffing problem at the four nursing homes and horrifying cases of neglect.

“Residents suffered tragic harm and their families were often left in the dark or in despair about their loved ones.”

– Letitia James, Attorney General of New York

To make matters worse, the attorney general claimed that families of the residents in these nursing homes weren’t able to see or visit with their loved ones.

Thanks to the hard work of James and her team, the owners were held accountable and agreed to pay a settlement totaling $45 million.

If you suspect your loved one is being mistreated in a nursing home, it’s important to act fast. Get a free case review to learn more about your options.

How Understaffing Led to Neglect in New York Nursing Homes

Attorney General James claimed that understaffing at nursing homes managed by Centers led to severe neglect, leaving residents without proper care in harmful conditions.

The lawsuit alleged that insufficient staffing led to neglect, including:

  • A patient with dementia leaving a facility unsupervised
  • Brain damage and concussions from a fall out of bed
  • Residents sitting in their own bodily waste for hours
  • Untreated sepsis that led to wrongful death

Running a nursing home effectively requires qualified staff who have the training to properly care for every resident.

In this case, the owners allegedly pocketed the money the government sent them for patient care, resulting in understaffing and tragic instances of neglect.

“Residents were left alone and on their own, often unaided and unsupervised, leading to dangerous falls and broken bones. Residents lived in squalor, surrounded by neglected food trays, vermin and the smell of human waste.”

– Letitia James, Attorney General of New York

Understanding the $45 Million New York Nursing Home Settlement

Since James filed this case in civil court, the nursing home owners faced a cash settlement and mandatory reforms as consequences for alleged Medicare and Medicaid fraud and neglect.

Nursing home settlement cases are typically pursued in civil court.

Did you know

Taxpayers are losing approximately $100 billion per year to Medicare and Medicaid fraud according to the National Health Care Anti-Fraud Association.

While a criminal suit may result in jail time and charges, a civil suit is mainly about financial payback. This means the person found guilty will have to pay money in the event of a verdict or settlement.

A settlement of this magnitude is typically broken down into multiple parts that each add up to the total. For example, in this case, the owners of Centers must pay $35 million for improved resident care and staffing, and $8.75 million to reimburse Medicare and Medicaid.

“Centers’ owners operated the nursing homes with insufficient staffing so that they could pocket tens of millions of taxpayer dollars meant for resident care.”

– Letitia James, Attorney General of New York

Tips to Keep Your Loved One Safe From Nursing Home Neglect

The case in New York shows that signs of neglect can point to deeper problems within a nursing home. Spotting and responding to these red flags quickly is a way to hold nursing home owners accountable.

Here are tips for keeping your loved one safe in a nursing home:

  • Check in often, even when you can’t visit: Visiting is important, but busy schedules or travel can make it tough. Stay connected through texts, emails, or calls when you can’t visit.
  • Confirm that there’s enough staffing: Pay attention during visits to assess staffing. A lack of staff presence or long waits for help may signal problems at the facility.
  • Get to know their caretakers: After choosing a facility, meet your loved one’s caregivers. This helps you understand who’s providing care and shows your support.

Following those tips will help keep you connected with your loved one and their caregivers. The more knowledgeable you are about their situation, the better positioned you’ll be to notice any signs of neglect.

If you believe your loved one may have been abused or neglected in a nursing home, you may qualify for compensation. Get a free case review now.

Reporting Nursing Home Neglect

This case shows that some nursing home owners prioritize profits over the well-being of residents. When this happens, it can quickly lead to neglect and poor care.

It’s crucial for families and residents to know how to properly report nursing home abuse and neglect. Knowing who to contact right away can make all the difference when trying to hold a nursing home accountable.

In emergencies, call the police. For non-emergencies, reaching out to your local long-term care ombudsman can provide the help you need.

When other options fail to address neglect or abuse, nursing home lawsuit settlements can provide justice and accountability. Taking legal action may provide compensation for the harm caused and push for better care standards.

Call us right now at (855) 264-6310 or get a free case review to find out if your family may be entitled to compensation.

Nursing Home Abuse Support Team
Julie Rivers HeadshotReviewed by:Julie Rivers, MBA

Eldercare Advocate & Expert

  • Fact-Checked
  • Editor

Julie Rivers is an eldercare advocate with over 15 years of dedicated service to victims of nursing home abuse and neglect. Her journey in this field became deeply personal when she assumed the role of an unpaid caregiver during her mother’s battle with Alzheimer’s disease.

The Nursing Home Abuse Center (NHAC) was founded to bring justice to those affected by nursing home and elder abuse. Our mission is to educate and empower victims of abuse and their families to take a stand against this unlawful mistreatment. We work to return dignity back to those who have been broken down by nursing home abuse and neglect.

  1. ABC News. (November 14, 2024). New York nursing home operator accused of neglect settles with state for $45M. Retrieved on November 25, 2024 from https://abcnews.go.com/US/wireStory/new-york-nursing-home-operator-accused-neglect-settles-115875312#
  2. AP News. (June 28, 2024). Nursing homes accused of mistreating residents, misusing $83 million in lawsuit from New York AG. Retrieved on November 25, 2024 from https://apnews.com/article/new-york-attorney-general-nursing-homes-lawsuit-91aba61652ff287077169c4b80bd374e
  3. CNBC. (March 9, 2023). Inside the mind of criminals: How to brazenly steal $100 billion from Medicare and Medicaid. Retrieved on November 25, 2024 from https://www.cnbc.com/2023/03/09/how-medicare-and-medicaid-fraud-became-a-100b-problem-for-the-us.html
  4. U.S. Department of Health and Human Services Office of Inspector General. (October 22, 2024). Nursing Homes. Retrieved on November 25, 2024 from https://www.oig.hhs.gov/reports-and-publications/featured-topics/nursing-homes/