Andover Subacute and Rehab Center Services Two, Inc.

Andover, NJ 2010--2012 Assisted Living / Long-Term Care
DOJ NJ-USAO OIG False Claims Materially Substandard Care Worthless Services
Penalty
$888,000

Outcome

Andover Subacute settled for $888,000 ($395,508 federal / $492,492 New York state) for billing Medicaid for materially substandard or worthless nursing services failing to meet federal standards of care; Corporate Integrity Agreement imposed.

Details

Andover Subacute and Rehab Center Services Two (Andover, NJ) — Materially Substandard Care

Outcome: Settled for $888,000 for billing New York Medicaid for materially substandard or worthless nursing services failing to meet federal care standards from July 2010 through December 2012; Corporate Integrity Agreement imposed.

Andover Subacute and Rehab Center Services Two, Inc., a skilled nursing facility in Andover, Sussex County, New Jersey, billed New York Medicaid for nursing services provided to patients that were "materially substandard or worthless" — failing to meet federal standards of care and applicable federal statutes. The billing occurred from July 1, 2010, through December 31, 2012.

The settlement of $888,000 was divided between federal ($395,508) and New York State ($492,492) portions, reflecting the joint federal-state nature of Medicaid funding. A Corporate Integrity Agreement was imposed as part of the May 31, 2017 resolution.

Notably, the facility later became Woodland Behavioral and Nursing Center and experienced 18 COVID-19 resident deaths in 2020 — suggesting ongoing care quality issues following the 2017 settlement.

Primary Source: Skilled Nursing Facility To Pay $888,000 To Resolve Alleged False Claims Related To Materially Substandard Care

How Crucible Prevents This

Crucible's care-quality attestation enforcement hooks would catch this false certification pattern; a compliance gate requiring documented deficiency-free status before submitting New York Medicaid billing attestations would prevent claims for services failing federal care standards from reaching payers.

Source: Skilled Nursing Facility To Pay $888,000 To Resolve Alleged False Claims Related To Materially Substandard Care

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