South Jersey Nursing Home Suspended From Medicaid; State Cites Fraud, Poor Inspections

Correction: The nursing homes will become ineligible for NJ Medicaid funding, effective May 24.

DEPTFORD, NJ — A Deptford nursing home is among two in New Jersey issued temporary suspensions from state Medicaid benefits.

The Centers for Rehab & Healthcare in Deptford and Hammonton will become ineligible for Medicaid, beginning May 24. The Office of the State Comptroller (OSC) cited "evidence of massive Medicaid fraud" from its owning company, along with poor facility conditions.

The suspensions are temporary, pending completion of the OSC's investigation and the completion of New York's legal proceedings.

Centers Health Care owns both facilities.

Kevin Walsh — New Jersey's acting comptroller — sent letters about the suspensions Thursday to Kenneth Rozenberg, Beth Rozenberg, Daryl Hagler and their entities.

"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," Walsh said in a statement. "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."

New York Attorney General Letitia James sued the company last year, accusing owners of enriching themselves with $83 million in public funds meant for nursing homes. In July, a State Supreme Court judge found credible evidence of "repeated and persistent fraud" and appointed a financial monitor and health monitor to oversee operations.

A spokesperson for Centers Health Care declined comment on the New Jersey suspensions.

"Centers Health Care does not comment on pending litigation," spokesperson Jeff Jacomowitz emailed Patch. "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."

Deptford Center has a 1-star rating on Medicare.gov — based on health inspections, staffing levels and other measures. The facility received 24 health citations from its latest inspection report, issued Sept. 20.

Investigators found that staff left garbage bags, gowns, linens and "unpacked incontinence briefs" in the hallway.

Federal authorities also investigated several instances of suspected abuse and neglect. During one incident in July 22, a certified nursing assistant (CNA) called a resident with dementia "nasty" and refused to place them on the toilet. The CNA pulled the resident's arm, making the resident scared that the staff member was going to break it, the report said.

The New Jersey Department of Health, Department of Human Services, and Long-term Care Ombudsman have been informed so they can prepare to take action while the suspensions are in effect, the OSC said.