NEW JERSEY (KYW Newsradio) — Two South Jersey nursing homes are at risk of being cut off from Medicaid because of alleged fraud, waste and abuse by the owners.
South Jersey Extended Care in Bridgeton is the lowest-rated nursing home in the state. Acting Comptroller Kevin Walsh says the owners, Steven Krausman and Michael Konig, have been pocketing millions while gaming the system.
“They profited on the despair of people who wanted better care but had no way to get it,” Walsh said.
Walsh says they installed Konig’s cousin Mark Weisz as a straw owner while they ran other companies to act as both customer and vendor, collecting tens of millions in federal and state funding. At one point, they were operating nearly 10 facilities statewide.
“They maximize profit by short-staffing and using unqualified staff — the director of nursing wasn’t a registered nurse.”
The group also runs Sterling Manor in Maple Shade. Both facilities are set to lose Medicaid eligibility in 60 days. Walsh says the state would step in to ensure residents receive continued care.
KYW was unable to reach the owners for comment.