The owners of Deptford Center for Rehabilitation and Healthcare and Hammonton Center for Rehabilitation and Healthcare were suspended from New Jersey Medicaid by the state Comptroller.
According to the New Jersey Comptroller’s Office, Allen Wilen of the Eisner Advisory Group, LLC has been ordered by a Superior Court judge to take charge of running the nursing homes starting from June 17.
Related posts
According to a press statement from the Comptroller, the appointment of the judge grants full control and authority over the finances and operations of both South Jersey nursing homes to the receiver.
State officials have revealed that the state Department of Health had to seek a court order in order to prevent two facilities from being suspended from Medicaid. These facilities heavily rely on Medicaid funding and would have been in dire financial trouble if suspended from it.
The owners of the facilities, namely Kenneth Rozenberg, Beth Rozenberg, and Daryl Hagler, have been notified by the NJ Comptroller’s Medicaid Fraud Division about the poor conditions in their facilities as well as the evidence of massive Medicaid fraud in their New York facilities. The owners were informed that they would be suspended from New Jersey Medicaid effective June 17, unless they completely dissociated themselves from the facilities.
The Hammonton Center and Deptford Center have been repeatedly cited for serious health and safety violations that have had a negative impact on the care provided to residents. The state Comptroller highlighted these issues in its Jan. 25 suspension letter.
The federal Centers for Medicare and Medicaid Services have given low ratings for health and safety to both Hammonton Center and Deptford Center.
Acting State Comptroller Kevin Walsh asserted in a press statement that it is their responsibility to take action when there is substantial evidence of fraud, embezzlement of public funds, and self-serving practices. He added that in order to safeguard the New Jersey Medicaid and the people who depend on it, they will put a halt to the flow of Medicaid funds to those implicated in fraudulent activities and demand their removal from the program.
In a letter sent to Hagler and the Rozenbergs, the state informed that the suspension has been lifted temporarily by the Comptroller in light of the receivership. The suspension will remain lifted until the outcome of the New York fraud case and the Comptroller’s investigation or until the receiver decides to close the facilities, whichever comes first.
According to court filings, the owners have identified a potential buyer and have consented to the appointment of a receiver as stated by the Comptroller.
As per the court order, the receiver has been granted the authority to take all necessary actions to preserve the property and ensure the well-being of the residents until the Department of Health sanctions the sale. Moreover, the owners are prohibited from impeding the receiver’s duties, including asset liquidation, as stated in the order.
The nursing homes funded by New York Medicaid and Medicare were allegedly being used by Hagler and the Rozenbergs to siphon $83 million for their personal enrichment. The accusations against them were proven in July 2023, when a New York State Supreme Court judge found credible evidence of “repeated and persistent fraud”. As a result, the judge appointed a financial monitor and health monitor to assess and manage the operations of their New York nursing homes.
