Camille Baker reports for The New York Times on how owners of two nursing homes in New Jersey pocketed millions of dollars they received from state Medicaid programs and left residents without adequate care. The story is particularly concerning because many nursing home residents across the country face the same plight, particularly in for-profit and chain nursing homes.
I’ve warned Just Care readers before to avoid chain nursing homes, which all too frequently have been found to have inadequate staffing and to put residents at risk. As in the New York Times story, nursing home owners too often take an excessive amount of the money they receive from Medicaid for themselves, stinting on patient care. But, these owners are rarely put out of business Even when the state detects fraud, the nursing homes are likely to remain open.
“All indications are that what we have identified in this and in earlier reports is just the tip of the iceberg in the nursing home industry,” said the New Jersey Comptroller. For-profit nursing homes are particularly problematic. Without strict nursing home regulations, constant oversight and meaningful penalties for serious violations, nursing home owners can leave their residents without proper care.
In New Jersey, the nursing home owners had not staffed their facilities with registered nurses, violating the state law. They also filed false claims. But, it’s not yet clear whether the owners will face criminal charges for their behavior. Meanwhile, their nursing homes are still open, with a receiver appointed by a court to control operations and finances.
The Office of the State Comptroller in New Jersey is trying to recoup $124 million from the two nursing home owners. But, the consequences of their bad acts for the nursing home residents are not reversible. In many cases, understaffing causes horrifying suffering and needless death.
The New Jersey nursing home owners have already been subject to an investigation in New York State for defrauding its Medicaid program at four nursing homes they owned. But, the owners settled that suit and continue to operate nursing homes in New York.
Here’s more from Just Care:



