St. Margaret's Center paid $1.3 million to settle False Claims Act allegations for fraudulently certifying compliance with nursing home standards while chronically understaffing and neglecting disabled and chronically ill children in its care.

St. Margaret's Center (Albany, NY) — Pediatric Nursing Home Neglect / False Compliance Certification (2018–2023)

Outcome: Paid $1.3 million to resolve False Claims Act allegations for fraudulently certifying compliance with state and federal nursing home standards while chronically understaffing and neglecting disabled and chronically ill children.

St. Margaret's Center, a not-for-profit pediatric skilled nursing facility in Albany operated by Center for Disability Services Holding Corporation, serves chronically ill and disabled children through Medicaid. From 2018 to 2023, the facility "fraudulently certified it was meeting state and federal nursing home standards while failing to provide adequate care to the children and other residents."

The core violations involved chronic understaffing that directly harmed residents. The facility consistently failed to maintain adequate staffing ratios required under state and federal nursing home standards, resulting in resident neglect that jeopardized children's health and safety. Despite these conditions, the facility continued to submit Medicaid claims accompanied by required certifications of compliance with care standards.

The joint investigation by New York Attorney General Letitia James and the U.S. Attorney's Office for the Northern District of New York resulted in a $1.3 million settlement. As conditions of resolution, the facility entered a five-year monitoring arrangement with HHS-OIG and a Corporate Integrity Agreement requiring ongoing compliance oversight. The settlement was announced February 12, 2026.

Primary Source: Attorney General James Secures $1.3 Million From Albany Pediatric Nursing Home for Years of Resident Neglect