New York Nursing Homes Accused of Misusing Funds and Neglecting Residents

Created: JANUARY 25, 2025

Four New York nursing homes and their operators are facing serious allegations of misusing over $83 million in government funds and providing substandard care to their residents. New York Attorney General Letitia James filed a lawsuit detailing the alleged misconduct, which includes claims of understaffing, neglect, and prioritizing personal enrichment over resident well-being.

The lawsuit alleges that Centers Health Care, the company operating the facilities, diverted Medicaid and Medicare funds for the personal gain of its owners, relatives, and associates. This alleged misappropriation of funds contributed to severe understaffing, leading to a cascade of neglectful practices.

Residents reportedly suffered from inadequate care, including delayed meals, theft of personal belongings, unanswered calls for assistance, and unsanitary living conditions. The lawsuit paints a grim picture of residents left unattended for extended periods, resulting in falls, injuries, and exposure to unhygienic environments. Specific instances cited include a resident developing fatal sepsis due to untreated bedsores, another with an improperly attached colostomy bag, and widespread dehydration among residents. One relative recounted finding their uncle, a veteran, in a deplorable state, unbathed and alone in a soiled room.

New York Attorney General Letitia James

The lawsuit further alleges that the nursing homes failed to adequately control the spread of COVID-19, resulting in over 400 resident deaths across the four facilities in 2020. The Attorney General is seeking the return of the misused funds and a ban on new admissions until staffing levels are improved.

Centers Health Care vehemently denies the allegations, asserting its commitment to patient care and describing the claims as baseless. The company says it attempted to resolve the matter outside of court and intends to vigorously defend itself against the lawsuit. The four nursing homes named in the suit are Beth Abraham Center for Rehabilitation and Nursing in the Bronx, Holliswood Center for Rehabilitation and Healthcare in Queens, Martine Center for Rehabilitation and Nursing in Westchester County, and Buffalo Center for Rehabilitation and Nursing. The lawsuit targets Centers Health Care co-owners Kenneth Rozenberg and Daryl Hagler, along with several businesses linked to them, family members, or business partners.

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