More Centers Health Care Nursing Home Facilities Involved in Medicaid Fraud Allegations

More nursing homes owned by Centers Health Care are being investigated for alleged Medicaid fraud, while also having been plagued with serious safety concerns.

The 240-bed Hammonton Center and Deptford Center for Rehabilitation and Healthcare in New Jersey, join other facilities owned by Centers Health that are under investigation, according to a report from the Press of Atlantic City.

Hammonton alone pulled in more than $86 million in Medicaid funds over the past seven years, reports found. The sites will be cut off from funding by June 17 unless ownership cedes financial control of the property. The facilities were originally given until May 24 but state officials felt it ran the risk of closure with that deadline.


State regulators on March 15 issued a notice of intent to suspend the long-term facility licenses, and directed owners to sell the facilities or submit to an independent monitor if they want to continue receiving Medicaid dollars, another report from the Press of Atlantic City found. Owners were also told to submit an emergency operations plan should the facility need to evacuate.

The New Jersey Department of Health (NJ DOH) ordered Hammonton Center to “demonstrate its financial ability to continue to operate,” including the ability to meet payroll and pay for medication, supplies, food and contracted services for 90 days beyond the original May 24 deadline.

With its heavy reliance on Medicaid, Hammonton faces a “looming financial crisis,” according to the NJ DOH. About 90% of patient days were billed to Medicaid in the second quarter of 2023.


Centers Health leadership did not have any comment on the latest investigation.

A Lee Enterprises Public Service Journalism Team and Press of Atlantic City found years of patient safety concerns and “questionable payments” to companies controlled by the owners of Hammonton Center, Daryl Hagler, Kenneth Rosenberg and Beth Rozenberg.

State officials including New Jersey’s Office of the State Comptroller have been investigating Hammonton along with the Deptford Center for Rehabilitation and Healthcare. It’s unclear if other state agencies like the NJ Attorney General’s office are involved.

These investigations follow a lawsuit against Centers Health out of New York.

The suit pertains to Centers Health facilities in Buffalo, the Bronx, Queens and White Plains, New York. The company also runs facilities in Glens Falls and in Canandaigua near Auburn.

The lawsuit alleges concerning gaps in patient care, while owners extracted $83 million in Medicaid funding that was supposed to go toward patient care. Rozenberg used the funds to purchase an Israeli airline and allowed Hagler to add to his New York real estate portfolio, prosecutors alleged.

Hagler and Rosenberg are accused of prioritizing “their personal enrichment by minimizing staffing expenses while maximizing revenue from admissions and ignoring and violating many state and federal laws designed to protect nursing home residents,” according to the lawsuit as reported in the Press of Atlantic City.

The case is ongoing and a New York Supreme Court judge has stated there is evidence of “repeated and persistent fraud” by the owners.

In addition to New York, Centers Health is facing medical malpractice lawsuits in Kansas and Missouri federal courts, reports found.

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