St. Margaret's Center agreed to pay $1.3 million to resolve False Claims Act allegations that it billed for worthless care and falsely attested to having a compliance program promoting quality care.

St. Margaret's Center (Albany, NY) — Worthless Care / False Compliance Attestation

Outcome: Settled False Claims Act allegations for $1.3 million, admitting to billing for worthless care and falsely attesting to a compliance program promoting quality care.

Center for Disability Services Holding Corporation, operating as St. Margaret's Center, a skilled nursing facility in Albany, New York, agreed to pay $1.3 million to resolve allegations that it violated the False Claims Act in two distinct ways: first, by billing government health care programs for care that was effectively worthless to patients; and second, by falsely attesting that it had implemented a compliance program designed to promote quality care.

The false compliance attestation is a particularly significant element of the case — the facility not only provided substandard care but actively misrepresented to regulators and payers that it had functioning compliance infrastructure. This dual violation reflects both patient harm and regulatory deception.

The U.S. Attorney's Office for the Northern District of New York announced the settlement on February 12, 2026. As part of the resolution, a Corporate Integrity Agreement was also established, requiring ongoing compliance monitoring. The case was investigated by the Department of Justice and HHS Office of Inspector General.

Primary Source: St. Margaret's Center Pays $1.3 Million Under the False Claims Act