New York AG Secures $45 Million Settlement with Nursing Homes

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  • New York AG Letitia James entered into an Assurance of Discontinuance (“AOD”) with the owners, operators, management company, landlords, and associated entities of four nursing homes managed by Centers for Care LLC, d/b/a Centers Health Care (collectively, “Centers Health Care”) to resolve allegations of financial fraud, chronic understaffing, and severe neglect of residents.
  • According to the AOD, Centers Health Care allegedly engaged in multiple fraudulent schemes, including submitting false Medicaid claims, diverting taxpayer funds through collusive real estate arrangements, inflated loans, and phony fees paid to affiliated companies. The facilities were also accused of chronic understaffing and providing inadequate resident care, violating New York Public Health Law, New York Executive Law §§ 63-c and 63(12), the New York State False Claims Act, and other statutes.
  • Under the terms of the AOD, Centers Health Care will pay $45 million in total monetary relief. This includes $36 million allocated to improving staffing levels and resident care, $8.75 million to reimburse the state Medicaid program, and $250,000 to cover the state’s investigative costs. Additionally, Centers Health Care must implement staffing increases and further reforms under the supervision of an Independent Health Care Monitor. The organization’s finances will also remain under the oversight of an Independent Financial Monitor.
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