NY AG Reaches $45M Settlement for Nursing Home Neglect

NY AG Reaches $45M Settlement for Nursing Home Neglect

Introduction

The operators of four New York nursing homes have agreed to a $45 million settlement to resolve allegations of neglect and mistreatment of residents, including claims that some were left in their own waste for hours, according to the state Attorney General.

The allegations

The civil lawsuit, filed last year, accused Centers Health Care owners and operators of diverting Medicaid and Medicare funds to benefit themselves, relatives, and associates instead of using the money for resident care. The Attorney General alleged that chronic understaffing led to neglect, injuries, and residents living in squalid conditions without adequate supervision.

What does the settlement offer?

Under the settlement, $35 million will be allocated to improve resident care and staffing, while $8.75 million will go to Medicaid and Medicare programs as restitution. Independent monitors, appointed shortly after the lawsuit was filed, have already begun overseeing reforms to ensure compliance.

What did the attorney general say?

“Centers’ owners operated these nursing homes with insufficient staffing to pocket taxpayer dollars meant for resident care,” the Attorney General said in a statement. “This neglect caused tragic harm to residents and left families in despair.”

Centers Health Care's statement

Centers Health Care, in its own statement, expressed satisfaction with resolving the case, noting that all allegations of wrongdoing were dismissed. The company emphasized its commitment to implementing the settlement terms and making substantial investments in resident care.

“For over three decades, Centers has cared for thousands of residents across dozens of facilities while maintaining high standards of care,” the statement read. “We remain dedicated to enhancing resident welfare and meeting the terms of the settlement.”

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