New York Attorney General Letitia James has reached a significant settlement with the owners and operators of four nursing homes managed by Centers for Care, LLC. The agreement requires a $45 million payment and the implementation of reforms to address issues of financial fraud and resident neglect identified in an investigation by the Office of the Attorney General (OAG).
The investigation focused on Beth Abraham Center for Rehabilitation and Nursing in Bronx County, Buffalo Center for Rehabilitation and Nursing in Erie County, Holliswood Center for Rehabilitation and Healthcare in Queens County, and Martine Center for Rehabilitation and Nursing in Westchester County. These facilities were found to have engaged in practices such as inadequate staffing, which contributed to resident mistreatment.
As part of the settlement, Centers will allocate $35 million specifically to improve care and staffing at these facilities. An Independent Health Care Monitor (IHM) will oversee ongoing reforms, while an Independent Financial Monitor (IFM) will ensure compliance with financial regulations. Both monitors were appointed following OAG's lawsuit filed in June 2023.
Attorney General James emphasized that "residents at these Centers nursing homes endured years of tragic and devastating mistreatment," highlighting the owners' pursuit of profit over proper care. The lawsuit also alleged fraudulent activities by Kenneth Rozenberg and Daryl Hagler, including inflated rents through collusive real estate arrangements.
In addition to monetary penalties, Centers is required to maintain recommended staffing levels until at least July 31, 2026. They must also appoint compliance officers at each facility to ensure adherence to federal and state laws.
This case marks the third instance where OAG has enforced major reforms in New York nursing homes. Previously, settlements were secured with other facilities due to similar allegations.
The settlement was facilitated by OAG's Medicaid Fraud Control Unit (MFCU), led by various executive staff members who collaborated with multiple departments throughout the investigation process.
Attorney General James continues her commitment to safeguarding nursing home residents across New York State from neglectful practices.