ALBANY, N.Y. — New York Attorney General Letitia James announced Friday that a pediatric nursing home in Albany will pay $1.3 million to resolve allegations of years of resident neglect and false Medicaid billing, following a joint state and federal investigation.
The Center for Disability Services Holding Corporation, which operates St. Margaret’s Center, admitted wrongdoing as part of the settlement and agreed to five years of oversight by the U.S. Department of Health and Human Services Office of Inspector General.
The 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, St. Margaret’s falsely certified that it was complying with federal and state nursing home standards while failing to provide adequate care to chronically ill and disabled children and other residents insured by Medicaid.
Authorities said the facility was persistently understaffed and failed to meet required standards of care, jeopardizing the health and safety of vulnerable children.
A New York State Department of Health inspection found that staff failed to properly supervise three children, placing them in immediate jeopardy. Other inspections cited inadequate respiratory care and medication errors, including two instances in which a resident did not receive prescribed anti-seizure medication.
Based in part on those findings, the Centers for Medicare and Medicaid Services placed the facility in its Special Focus Facility program, a designation for nursing homes with a history of serious quality issues.
Investigators also determined that St. Margaret’s failed to maintain an effective compliance program, as required under federal and state law for Medicaid providers. Despite repeated deficiencies, the facility continued to submit claims to Medicaid certifying that it met applicable standards, according to authorities.
Under the settlement, St. Margaret’s will pay $1.3 million to Medicaid, with $707,200 going to New York state and $592,800 to the federal government. In addition, the facility will be subject to monitoring by the HHS Office of Inspector General for five years to oversee care and conditions.
The case originated from a whistleblower lawsuit filed under the qui tam provisions of the federal and state False Claims Acts, which allow private individuals to sue on behalf of the government and share in any recovery.
The settlement resolves civil allegations and does not constitute a criminal conviction.
