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Nursing homes among New York Medicaid frauds

LTC Liability Monitor, July 21, 2005

Over the course of several decades, New York's state Medicaid program has reportedly experienced billions of dollars in fraud, according to the New York Times. Many nursing home executives in the state are among the allegedly fraudulent, and have seen "substantial salaries and profits" thanks to Medicaid payments.

One Bronx-based SNF, Laconia Nursing Home, receives 90% of its revenues from Medicaid, and its operator earned $3 million in salary and profit in 2002. Owners and operators of two other city nursing homes, Grand Manor Nursing Home (90%) and Morris Park (75%), earned $2.4 million and $1.5 million in salary and profit, respectively. Watchdog groups admitted that it is reasonable for owners to earn a decent living, but such high numbers seem unlikely, especially given that staffing levels in New York nursing homes are lower than the national average, the Times reported.

New York state has never conducted a formal investigation into Medicaid fraud, despite years of reported prodding by advocacy groups.

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