Atlantic Co. Nursing Home To Be Suspended From Medicaid: Comptroller

HAMMONTON, NJ — The state said two South Jersey nursing homes will be suspended from Medicaid, citing poor conditions in the facilities and evidence their owners committed "massive Medicaid fraud" in New York.

The Office of the State Comptroller said that the Hammonton Center for Rehabilitation and Healthcare and Deptford Center for Rehabilitation and Healthcare could lose state Medicaid funding, effective May 24.

These nursing homes are operated by Centers Health Care. Last year, New York Attorney General Letita James accused owners Kenneth Rozenberg, Beth Rozenberg, and Daryl Hagler of siphoning $83 million from Medicare and Medicaid-funded nursing homes for their own gain.

Last July, the New York State Supreme Court judge found evidence of “repeated and persistent fraud” and appointed a financial monitor and health monitor to assess and manage operations.

“When there is evidence of fraud of this magnitude, and when a judge has acted to prevent further siphoning and self-dealing, we have a duty to act," said Acting State Comptroller Kevin Walsh on Jan. 25.

Both centers have also received a one-star rating, the lowest possible score, from the federal Centers for Medicare and Medicaid Services.

Centers Health Care spokesperson Jeff Jacomowitz said the company will not comment on pending litigation, adding, "We will continue to fight the New York Attorney General's spurious claims and will respond to the New Jersey copycat claims in due course."

The New Jersey Medicaid suspension is temporary, pending completion of the OSC investigation and completions of New York legal proceedings. And, the OSC advised the nursing homes that they may continue to operate with Medicaid funds if the current owners divest ownership, or place the facilities under an independent monitor.

"To protect New Jersey Medicaid and the residents who rely on it, we must stop the flow of Medicaid funds to these individuals, and we must require them to step aside," Walsh said.

The Hammonton facility has an above-average number of citations from health inspections, and complaint and infection control infections. There have been 25 complaints filed about this nursing home in the past 3 years that resulted in citations, according to Medicare records.

Last June, a complaint inspection revealed that the facility failed to administer physician-ordered insulin in a timely manner to 18 of 45 residents who require diabetic medication. And, the inspector found the Hammonton Center "failed to administer all medications prescribed for the residents by the physician in accordance with acceptable standards of practice."

Patch has reached out to Centers Health Care for comment.