Nursing homes owners accused of stealing $83M, neglecting patients: Lawsuit

The New York attorney general is suing the owners and operators of four nursing homes for allegedly using more than $83 million in Medicare and Medicaid funds for personal enrichment.

Centers for Care, doing business as Centers Health Care and co-owned by Kenneth Rozenberg and Daryl Hagler, owned and operated four nursing homes that were reported to have neglected patients, according to a June 28 news release from the attorney general's office. Residents died, were forced to sit in their own urine and feces, suffered severe dehydration and malnutrition, developed infections from untreated bed sources and sustained injuries from falls, the release said.

The lawsuit alleges that Centers Health Care converted more than $83 million in Medicaid and Medicare funds to enrich themselves, their families and business associates through a network of related companies instead of using the funds on resident care. The lawsuit seeks to prohibit the nursing homes from admitting new residents until staffing meets standards; to implement financial and healthcare monitors; and "to disgorge any and all wrongfully received government funds."

The affected nursing homes are:

  • Beth Abraham Center for Rehabilitation and Nursing, a 448-bed facility in New York City.

  • Buffalo Center for Rehabilitation and Nursing, a 200-bed facility in Buffalo.

  • Holliswood Center for Rehabilitation and Healthcare, a 314-bed facility in New York City.

  • Martine Center for Rehabilitation and Nursing, a 200-bed facility in White Plains.

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