PHILADELPHIA (KYW Newsradio) — The New Jersey Office of the State Comptroller has released a report detailing an extensive years-long scheme by two nursing homes that allegedly diverted tens of millions of Medicaid funds to themselves, while intentionally understaffing the facilities.
The OSC Medicaid Fraud Division investigation found the alleged actions of both the Hammonton and Deptford Centers for Rehabilitation and Healthcare resulted in widespread neglect of the residents — including elderly residents sitting in their own excrement crying out in pain without assistance and mistreatment of an amputee in a wheelchair — as well as two sexual assaults, one death and thousands of 911 calls.
“The facts we uncover in this report cry out for state government, including the legislature, to finally recognize that New Jersey nursing homes are straining under the weight of fraud, waste and abuse,” said acting New Jersey Comptroller Kevin Walsh.
According to Walsh, nursing home owners Daryl Hagler and Kenneth Rozenberg received $134.8 million in Medicaid funds and funneled $92 million of it to their related businesses, while improperly allocating the rest, leaving both facilities understaffed.
“In just five and a half years through improper rent payments alone, the nursing homes paid Rosenberg's property companies $27.8 million that made its way directly into [their] associates’ bank accounts.”
“Hammonton was understaffed by almost 52% daily, and Deptford was understaffed by an average of 54% daily, which means that the residents in both facilities received less than half the minimum of direct care they were required by law to receive.”
Walsh said his office has been seeking about $124 million plus penalties from Hagler and Rozenberg, and their related businesses. Subpoenas for testimony to Hagler and Rozenberg were issued but they declined citing their right against self-incrimination under the Fifth Amendment. The investigation is ongoing.
Meanwhile, Chris Widelo, state director of AARP New Jersey, called for lawmakers to step in on behalf of nursing home residents in the Garden State.
“AARP New Jersey is calling for the immediate passage of S1948/A1872, which would require full financial transparency, including disclosure of all owners and related-party companies, through audited, consolidated financial statements,.” Widelo said in a statement. “Without the ability to follow the money, New Jersey cannot protect residents or hold operators accountable.”