Medicaid funding for two additional nursing homes in New Jersey is being suspended due to serious fraud allegations tied to the owners' operations in New York. According to the Office of the State Comptroller and NJ.com, effective May 24, Medicaid funding will be cut off for Deptford Center for Rehabilitation and Healthcare and Hammonton Center for Rehabilitation and Healthcare. These facilities currently serve 200 and 156 residents, respectively. The suspension of funding is a significant move aimed at addressing the alleged mismanagement and misuse by nursing home owners.
Steps Required to Retain Funding
To continue receiving Medicaid funds, the nursing homes must appoint a monitor or implement similar measures to remove the current financial controllers: Kenneth Rozenberg, Beth Rozenberg, and Daryl Hagler. This action is intended to ensure that the facilities are managed in a manner that complies with state and federal regulations.
Key Figures Involved
Kenneth Rozenberg, a co-owner of Centers Health Care, and Daryl Hagler, a co-owner of properties alongside Rozenberg, are at the center of these allegations. Jeff Jacomowitz, a spokesperson for Centers Health Care, told NJ.com that the company plans to contest the New York Attorney General's accusations and will address similar claims in New Jersey accordingly. Centers Health Care has declined to comment further on the ongoing legal matters.
Details of the Allegations
The lawsuit filed by New York Attorney General Letitia James accuses the owners of embezzling $83 million from nursing homes funded by Medicare and Medicaid and using the funds for personal gain. The evidence of ongoing fraud was compelling enough for a New York State Supreme Court judge to appoint financial and health monitors last July to oversee these facilities operations.
Official Statements and Reactions
Tom Hester, Communications Director for the New Jersey Department of Human Services, highlighted the importance of Medicaid's mission to ensure quality care. He stated, "Ensuring the health and safety of our long-term care residents and the proper use of government funds is paramount. We strive to maintain the highest standards in care."
Broader Impact on the Nursing Home Industry
This situation follows the recent suspension of Gail and Ezra Bogner from the Medicaid program. The Bogners owned Princeton Care Center and Woodland Behavioral and Nursing Center, both now closed. The suspension of multiple nursing home operators underscores the state's commitment to maintaining high standards and addressing deviations from regulatory compliance.
Limecrest Subacute and Rehabilitation Center Case
Furthermore, Limecrest Subacute and Rehabilitation Center also faced the risk of losing Medicaid funding unless a buyer intervened. NJ.com said the owners intended to finalize a sale contract by February 1. However, the Centers for Medicare & Medicaid Services (CMS) fined Limecrest $643,860 for health and safety violations that resulted in the deaths of seven residents and the infection of 66 residents and staff during the COVID-19 outbreak.
Additionally, a Limecrest resident reportedly waited several days for prescribed antiviral medication for COVID-19, prompting the state health department to suspend new admissions to Limecrest in November due to these severe health and safety issues.
Conclusion
The suspension of Medicaid funding for these New Jersey nursing homes marks a critical effort to address and rectify severe allegations of fraud and mismanagement. The involvement of significant figures like Kenneth Rozenberg and Daryl Hagler, combined with the state's stringent actions, reflects a broader initiative to ensure the integrity and quality of care in long-term care facilities. As the legal proceedings unfold, the focus remains on safeguarding the welfare of residents and upholding the principles of Medicaid.
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