A pediatric nursing home in Albany will pay $1.3 million and submit to five years of federal oversight after investigators found years of resident neglect and false Medicaid claims.
New York Attorney General Letitia James announced the settlement with the Center for Disability Services Holding Corporation, which operates St. Margaret’s Center, on Feb. 12.
St. Margaret’s provides skilled nursing and rehabilitation services to chronically ill and disabled children and other residents insured by Medicaid. An investigation by the Attorney General’s Office and the U.S. Attorney’s Office for the Northern District of New York found that from Jan. 1, 2018 through Dec. 31, 2023, the facility fraudulently certified it met state and federal nursing home standards while failing to provide adequate care.
Investigators said the facility remained consistently understaffed and neglected young residents, putting their health and safety at risk.
“New York nursing home residents, especially children and their families, always deserve high-quality care and attention,” James said. “For years, St. Margaret’s failed to follow the law and endangered vulnerable children with poor staffing and care. Our laws set clear standards to protect the health and dignity of nursing home residents, including youth, and I will not hesitate to take action when nursing homes violate these laws.”
According to the investigation, St. Margaret’s failed to meet federal and state standards of care. One inspection by the New York State Department of Health found the facility failed to supervise three children, immediately jeopardizing their health and safety.
Residents also did not receive appropriate respiratory care, and staff made medication errors. In one case, the facility twice failed to administer a resident’s anti-seizure medication.
Based in part on state findings, the Centers for Medicare and Medicaid Services placed St. Margaret’s into its Special Focus Facility program, identifying it as one of the poorest performing nursing homes in the country.
Investigators also found the facility lacked an effective compliance program to ensure it followed state and federal law. Despite repeated failures, St. Margaret’s submitted claims to Medicaid certifying it complied with required standards.
Under the settlement, St. Margaret’s admitted wrongdoing and will pay $1,300,000 to Medicaid. Of that amount, $707,200 will go to New York state and $592,800 will go to the federal government.
The U.S. Department of Health and Human Services Office of the Inspector General will monitor the facility for five years to oversee care and conditions.
The investigation began after whistleblowers filed a complaint under the New York False Claims Act and the federal False Claims Act.
This marks the fifth nursing home Attorney General James has held accountable for resident mistreatment and neglect. Her office has pursued multiple cases involving fraud and poor care at facilities across the state.
Anyone with information about nursing home abuse or neglect can file a confidential complaint online or call the Attorney General’s Medicaid Fraud Control Unit hotline at 833-249-8499.
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