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 employees.

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