New York AG reaches $6.5 million settlement with healthcare facility

Bryan Cohen Aug. 13, 2014, 1:08pm

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NEW YORK (Legal Newsline) - New York Attorney General Eric Schneiderman announced a $6.5 million settlement with the operator of a Brooklyn elderly healthcare facility that allegedly engaged in Medicaid fraud.

Northern Manor Adult Day Health Care Program (ADHC) allegedly failed to provide services as represented in its claims for payment to Medicaid. Medical employees of Northern Manor ADHC allegedly falsified medical admissions forms to demonstrate qualifications for services patients were actually too healthy to receive. The facility also allegedly hired unqualified individuals to provide social work services and perform psychosocial assessments.

“Today’s charges detail yet another example of egregious, despicable abuse of public resources for personal gain, sending the message that criminal behavior will be met with the full force of the law,” Schneiderman said. “Employees of this program will never again be able to steal from taxpayers and deprive vulnerable New Yorkers of the care they deserve.”

Under the terms of the agreement, Northern Manor Multicare Center Inc., the nursing home that operates Northern Manor ADHS, will pay $6.5 million to the state. The nursing home also agreed to close Northern Manor ADHC and assist its patients in registering for placement in another state-approved program.

Schneiderman also announced the arrest of four employees from Northern Manor ADHC. Gelena Deverman, the program director of Northern Manor ADHC, could face up to 25 years in state prison for allegations of grand larceny. Larisa Rumynik, a registered nurse; Liliya Kostyuk; and Valentina Shapran could each face a maximum of four years in state prison.

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