New Jersey Watchdog Targets Nursing Home Owners Over Alleged Medicaid Misuse
The head of New Jersey’s government watchdog has sued the owners of two South Jersey nursing homes, saying they misused millions of dollars that were supposed to go to caring for vulnerable residents. The New Jersey Office of the State Comptroller filed the complaint because they believe that Medicaid payments were abused and purposefully kept from being seen by the public.
The complaint says that the dispute concerns the Hammonton Center and the Deptford Center for Rehabilitation and Healthcare, which are both owned by the same company. According to state investigators, their assessment found a systematic pattern of bad management that went beyond minor mistakes. The lawsuit says that the owners used public Medicaid money to manage the facilities and made money for themselves at the same time.
The state says that instead of using Medicaid money from taxpayers to improve care for residents, staffing, and operations at the institution, the proprietors took enormous amounts of money for their own gain. Investigators said that the behavior was both misspent and hidden, which means that attempts were taken to keep regulators from fully understanding how the money was being utilized.
The legal document mentions Daryl Hagler and Kenneth Rozenberg, who live in New York and are said to be close friends and neighbors. Prosecutors claim the two aren’t small-time criminals because they are said to have ties to dozens of nursing facilities in four separate states. The lawsuit also mentioned certain family members and business partners, which suggests that the alleged wrongdoing may encompass a larger group of people.
Officials from the state stressed that the case is about safeguarding public money and, more critically, protecting nursing home residents who need competent care. Medicaid is meant to help those who are very sick, and any misuse of that money can directly damage the safety and quality of life of residents. The Comptroller’s Office said that when owners put their own profits ahead of patient care, it makes people less likely to trust the healthcare system and puts citizens at danger.
The lawsuit is before Superior Court in Mercer County, where the state will try to get back the money it says was wrongfully seized. Even though the lawsuit doesn’t mean that someone is guilty of a crime, it shows that New Jersey officials are very serious about stopping people from misusing public healthcare funding. The defendants will be able to answer the claims in court.
This lawsuit also brings up bigger issues about how the long-term care sector is watched over. Every year, nursing facilities get billions of dollars from Medicaid. In recent years, state agencies have been paying more attention to make sure the money is used for its intended purpose. Officials argue that acts like this are aimed to make it clear that misusing public money, especially in healthcare, would not be tolerated.
The conclusion of this case could have effects on more than just the two sites involved as the judicial process continues forward. It might change how nursing facilities in New Jersey and other states handle Medicaid money and follow regulations about being open about their finances. The state’s action shows that it is serious about being accountable and protecting both the health of nursing home residents and taxpayer money.
Sources
New Jersey Office of the State Comptroller
New Jersey Superior Court, Mercer County
