Centers for Care, LLC (Beth Abraham Center, Buffalo Center, Holliswood Center, Martine Center)
Outcome
Owners, operators, and related parties of four nursing homes managed by Centers for Care, LLC agreed to pay $45 million and submit to independent health care monitoring through at least 2026 after the New York Attorney General found the operator fraudulently received Medicare and Medicaid funds while deliberately understaffing facilities, resulting in residents developing brain damage from unsupervised falls, sitting in bodily waste for hours, and suffering other documented harms.
Details
Centers for Care, LLC — $45 Million Settlement for Fraud and Resident Neglect at Four Nursing Homes (2024)
Outcome: Owners, operators, and related parties of four nursing homes managed by Centers for Care, LLC agreed to pay $45 million and submit to independent health care monitoring through at least 2026 after the New York Attorney General found the operator fraudulently received Medicare and Medicaid funds while deliberately understaffing facilities, resulting in residents developing brain damage from unsupervised falls, sitting in bodily waste for hours, and suffering other documented harms.
Centers for Care, LLC managed four nursing homes in New York State: Beth Abraham Center in the Bronx, Buffalo Center in Erie County, Holliswood Center in Queens, and Martine Center in Westchester County. The facilities' ownership structure included Kenneth Rozenberg and Daryl Hagler, who also controlled the management company.
The New York Attorney General's investigation found that Centers for Care requested payment from Medicare and Medicaid programs and then retained the funds instead of using them to hire qualified employees and provide adequate resident care — a pattern constituting both financial fraud against federal health programs and a breach of the operator's duty to residents. The investigation documented specific harms resulting from deliberate understaffing: a resident with dementia left a facility unsupervised and at risk; residents suffering brain damage and concussions from unattended falls out of bed; and residents sitting in their own bodily waste for extended periods.
A court-appointed Independent Health Care Monitor had been installed in July 2023 to oversee operations pending the litigation. The November 2024 settlement required Centers, Rozenberg, and Hagler to pay $45 million, including $8.75 million in restitution to the Medicaid and Medicare programs and $35 million to a Resident Care Fund designated to fund facility reforms. The Independent Health Care Monitor will continue oversight through at least July 31, 2026, after which the facilities must maintain staffing levels recommended by the monitor — including increased Registered Nurse positions — for at least two additional years.
Primary Source: Attorney General James Secures $45 Million and Delivers Major Reforms to Four Nursing Homes — New York AG
How Crucible Prevents This
Crucible's staffing compliance controls enforce minimum nurse-to-resident ratios and flag gaps between Medicare/Medicaid staffing claims and actual time-and-attendance records. Financial flow monitoring would have detected the diversion of Medicaid reimbursements away from care operations toward ownership distributions. Resident incident reporting requirements — mandatory documentation of falls, pressure ulcers, and hygiene failures with escalation timelines — would have surfaced the pattern of harms documented in the AG's investigation before they accumulated over a multi-year period. The independent monitor role imposed by the settlement is the analog to Crucible's continuous compliance oversight layer.
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