Residents of South Jersey Extended Care, the lowest-rated nursing home in New Jersey, have endured deplorable conditions while its operators allegedly siphoned millions in Medicaid funds through a fraudulent scheme. A recent investigation by the state’s Office of the Comptroller has unveiled a shocking pattern of abuse and financial mismanagement that has persisted for years.
Key Takeaways
- South Jersey Extended Care received $35.6 million in Medicaid funding from 2018 to 2023.
- Operators allegedly funneled $38.9 million to their own businesses, violating state and federal laws.
- The facility has consistently received one-star ratings, indicating severe deficiencies in care.
- The state has suspended the nursing home and its operators from the Medicaid program.
Investigation Findings
The investigation, led by Acting State Comptroller Kevin D. Walsh, revealed that the nursing home was run by Michael Konig and his brother-in-law Steven Krausman, who used a cousin, Mordechay "Mark" Weisz, as a straw owner to evade scrutiny. This arrangement allowed them to operate without accountability while profiting from the care of vulnerable residents.
Key findings include:
- Financial Mismanagement: The nursing home received $35.6 million in Medicaid funds but paid $38.9 million to companies controlled by Konig and Krausman, effectively draining resources meant for resident care.
- Substandard Care: The facility was plagued by chronic understaffing and unqualified personnel. For instance, the director of nursing was not a registered nurse, and the social worker lacked proper credentials.
- Health Violations: Inspection reports highlighted serious deficiencies, including unsanitary conditions and unmet medical needs, with the home consistently failing to meet minimum health and safety standards.
Broader Implications
The investigation also uncovered that Konig and Krausman managed nine other nursing homes across New Jersey, employing similar tactics to inflate costs and maximize profits. Their operations have raised alarms about systemic issues within the state's nursing home industry, where financial exploitation often correlates with poor care quality.
Calls for Reform
In light of these findings, Walsh has urged state legislators to implement reforms aimed at enhancing oversight of nursing homes. Recommendations include:
- Increased Transparency: Mandating comprehensive financial disclosures and clear ownership structures to prevent similar fraud.
- Stricter Regulations: Establishing more rigorous vetting processes for nursing home operators to ensure accountability.
Advocates, including AARP New Jersey, have echoed these calls, emphasizing the need for legislative action to protect residents and safeguard public funds. They argue that without significant reforms, the issues highlighted in this investigation could persist, jeopardizing the well-being of thousands of nursing home residents across the state.
Conclusion
The revelations surrounding South Jersey Extended Care serve as a stark reminder of the vulnerabilities within the nursing home system. As investigations continue, the focus remains on ensuring that residents receive the care they deserve and that those responsible for financial exploitation are held accountable. The state’s commitment to reform will be crucial in preventing future abuses and restoring trust in the nursing home industry.
Sources
- State watchdog finds millions of dollars in fraud at 'New Jersey's worst nursing home' • New Jersey Monitor, New Jersey Monitor.
- N.J,'s top watchdog goes after worst-rated nursing home - WHYY, WHYY.
- New Jersey nursing home barred from Medicaid, Press of Atlantic City.
