BOSTON — Attorney General Andrea Joy Campbell announced a $4 million settlement with Next Step Healthcare, LLC, a Woburn-based long-term care management company operating sixteen nursing homes in Massachusetts. The settlement resolves allegations that Next Step failed to properly staff its facilities, resulting in resident harm and neglect. Most of Next Step's facilities will now be overseen by an independent compliance monitor at the company's expense.
The agreement follows a years-long investigation by the Attorney General’s Office, which looked into reports of substandard care or regulatory violations based on complaints and referrals from the Department of Public Health (DPH).
“For years, Next Step prioritized profit over care by failing to adequately staff its nursing homes,” said AG Campbell. “I am proud of my team’s efforts in securing this settlement, the largest of its kind, which will send a message that this conduct will not be tolerated and ensure that Next Step’s facilities comply with staffing requirements moving forward, assuring that vulnerable elderly residents receive the proper care they need.”
Secretary of Health and Human Services Kate Walsh added, “We have an obligation to create a safe and caring environment for some of our most vulnerable residents in Massachusetts. I am grateful to the Attorney General’s Office for their work to ensure protections and appropriate measures are taken when patients can’t speak up for themselves.”
Next Step owns and operates 16 nursing homes across Massachusetts in locations including Attleboro, Fall River, Fitchburg, Lee, Malden, Melrose, Middleborough, Norwood, Plymouth, Taunton, Walpole, West Newton, Westborough, and Worcester.
Under the terms of the settlement agreement:
- Next Step agrees to budget staffing at state-mandated levels.
- An additional $4 million will be paid to resolve allegations.
- $750,000 will go to MassHealth and the Long-Term Care Facility Quality Improvement Fund.
- The remaining $3.25 million will be used for staffing improvements over three years under independent compliance monitoring.
The compliance monitor will oversee staffing levels and ensure compliance with state requirements. They will also review care quality at eight facilities through on-site reviews and submit biannual reports to the AG’s Office.
The investigation revealed that despite struggling with adequate staffing levels since April 2019—when reductions were made without considering patient needs—Next Step continued understaffing even after new state regulations took effect in April 2021. Consequently many facilities ranked in the bottom 10% for staffing levels within their counties.
These low staffing levels allegedly led to resident neglect and harm. The AG’s Office contends that claims submitted by Next Step to MassHealth for these services violated multiple laws including the Massachusetts False Claims Act and Consumer Protection Act.
This case was managed by Deputy Division Chief Kevin Lownds along with Assistant Attorneys General Scott Grannemann and Natalie Rutkowski among others from various divisions within the AG's office. Substantial assistance was provided by DPH and the Massachusetts Long-Term Care Ombudsman Program.
Members of the public aware of similar practices are encouraged to contact the Attorney General’s Medicaid Fraud Division or file complaints through DPH's website.
AG Campbell has been active in advancing elder justice across Massachusetts since taking office; initiatives include creating an Elder Justice Unit within her office aimed at protecting elders from abuse or neglect. Recent legislative efforts have focused on strengthening civil enforcement tools against such abuses while urging federal implementation of stronger minimum staffing standards in nursing homes.
The Massachusetts Medicaid Fraud Division receives significant funding from both federal grants totaling approximately $5.87 million for FY 2024 alongside contributions from Commonwealth funds amounting roughly $1.96 million for FY 2024.