NEW YORK (Legal Newsline) – Medford Multicare Center for
Living Inc. will pay $28 million after allegations its owners looted the
corporation and committed fraud and illegality in operating a business, New
York Attorney General Eric T. Schneiderman announced.
According to state claims, employees of the nursing home
diverted Medicaid funds to themselves and their controlled entities.
“Today we have taken significant steps to ensure residents
at Medford receive necessary and proper care, and that the tragic events of
2012 are never repeated,” Schneiderman said. “Nothing is more important than
securing the safety of those in nursing home facilities, yet, as alleged in our
complaint, Medford owners continued to line their pockets with millions in
public funding while Medford cut staffing, services and supervision, shirking
the duty of caring for some of our most vulnerable citizens.”
The settlement agreement establishes the Medford Resident
Care Fund with $9.1 million dollars that will finance the quality of care
reforms recommended by an independent operator, who will manage the care and compliance
of the facility for five years. Medford will also hire full-time nursing staff
for the facility and implement continuous and ongoing training for its
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