Attorney General Letitia James sues 4 nursing homes, alleging 'inhumane' conditions, fraud
“Nursing homes are meant to be safe spaces where the most vulnerable members of our community receive the care and dignity they deserve,” state Attorney General Letitia James said Wednesday. Credit: AP/Brittainy Newman
ALBANY — State Attorney General Letitia James on Wednesday filed a lawsuit against the owners and operators of four nursing homes in Queens, the Bronx, Westchester County and Buffalo accusing the homes of fraud that harmed, neglected and humiliated residents.
“Suffering was immense, and relentless … inhumane behavior,” James said Tuesday. She said the civil action was a warning to all nursing home operators “to get their house in order.”
James claims the company Centers for Care LLC, doing business as Centers for Health Care, misused more than $83 million in Medicaid funds through “multiple fraudulent schemes.” The nursing homes are the Holliswood Center for Rehabilitation and Healthcare, also known as the Holliswood Center, in Queens; Martine Center for Rehabilitation and Nursing at Martine Center in White Plains; the Beth Abraham Center for Rehabilitation and Nursing, also known as the Beth Abraham Center, in the Bronx; and the Buffalo Center for Rehabilitation and Nursing, also known as the Buffalo Center, in Erie County.
The company denied the accusations.
“Centers Health Care prides itself on its commitment to patient care,” said company spokesman Jeffrey Jacomowitz. “Centers denies the New York attorney general’s allegations wholeheartedly and attempted to resolve this matter out of court. We will fight these spurious claims with the facts on our side. Beyond that, Centers Health Care will not comment on ongoing litigation.”
The attorney general’s investigation reported that some residents were forced to sit for hours in their own waste; suffered severe dehydration; faced increased risk of death; developed infections and sepsis from untreated bed sores and inconsistent care of wounds; and suffered falls that caused permanent injuries and death.
James accuses the operators of employing too few staffers in order to save on costs and increase their own take, which left some residents without help to use the bathroom, get out of bed, eat and take care of hygiene. In addition, the investigative report states items including hearing aids, dentures, clothing and an electric piano were stolen from residents.
Residents and their relatives had reported issues that included neglected food trays and hovering flies along with a smell of urine and feces.
“Nursing homes are meant to be safe spaces where the most vulnerable members of our community receive the care and dignity they deserve,” James said. “Instead, the owners of Centers Health Care allegedly used these four nursing homes — and the vulnerable New Yorkers who lived there — to extract millions of dollars for their personal use.”
The lawsuit seeks the repayment of $83 million in Medicaid and Medicare funds, remedies made to the nursing homes, and payment for the state investigation.
James said the owners, operators and landlords of the nursing homes and related companies created a complicated way to extract state funds for nursing homes. The practice, which the attorney general’s office claims was a “money machine,” included collusive real estate deals, unnecessary loans with inflated interest rates, phony fees paid to companies that were owned by the suspects’ relatives, and inflated salaries.
The lawsuit names more than a dozen owners, operators and landlords. They include Kenneth Rozenberg, who owns half of Centers Health Care and a majority stake in the four nursing homes; Daryl Hagler, who owns half of Centers Health Care as well as majority stake in the real estate companies involved; and their family members, including Rozenberg’s wife, Beth Rozenberg, a former 50% shareholder of Centers Health Care; and Hagler’s son Jonathan Hagler, who owns a percentage of companies that the attorney general’s office said were involved in the scheme.
Michael Gormley has worked for Newsday since 2013, covering state government, politics and issues. He has covered Albany since 2001.
