NEW JERSEY (KYW Newsradio) — Two nursing homes in South Jersey are now under the supervision of a state receiver after the owners were accused of Medicaid fraud at their facilities in New York.
The Deptford Center and Hammonton Center have been poor performers for years, consistently receiving one or two stars. The owners, Ken and Beth Rosenberg and Daryl Hagler, are accused of skimming $83 million of Medicaid funding at their facilities in New York. A judge there found credible evidence of repeated and persistent fraud.
New Jersey long-term care facility Ombudsman Laurie Facciarossa Brewer says these places have historically only provided quality care when the state is watching closely.
“When they’re not under scrutiny, they go back to their natural state, if you will, and that is that. They tend to not be well-staffed, they tend to not be operating as well and offer as much quality as they should be offering.”
State Comptroller Kevin Walsh says the state receiver will ensure residents get continuity of care. The owners have voluntarily agreed to suspend some of their Medicaid lab operations. He’s assigned monitors to both facilities to ensure money isn’t being illegally taken.
They could be forced out or the facilities could be shut down pending the outcome of the ongoing investigation.