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Medford Multicare to return over $10 million to Medicare

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Staff writer ▼ | June 23, 2016
Medford Multicare
Medicine crime   A history of criminal conduct by employees

A $28 million settlement that claimed the owners of Medford Multicare Center for Living looted the corporation and committed fraud and illegality in operating a business has been reached.

The civil lawsuits claims were based on a history of criminal conduct by employees of the nursing home, staffing and service cuts and diversion of Medicaid funds to themselves and their controlled entities, New York Attorney General Eric T. Schneiderman announced.

The assurance of discontinuance provides that the settlement funds, which will be administered by an Independent Financial Monitor, will in part be used to establish a “Resident Care Fund” to fund care recommendations by the Independent Operator.

That fund will provide the much needed reforms and improvements in the delivery of care and services to Medford’s elderly and frail residents. In addition, ten million dollars will be returned to the Medicaid program. The Medford corporation was also sentenced for its role in the cover-up of a patient death in 2012.‎

The settlement is designed to significantly improve the care and services provided to the residents of Medford, and to ensure the facility’s compliance with applicable law and regulations.

This settlement requires Medford’s owners to:

- Retain an Independent Operator to manage the care and compliance of the facility for a period of five years;

- Implement the quality of care reforms and direct care improvements recommended by the Independent Operator;

- Hire full time nursing staff for the facility with appropriate supervision by skilled registered nursing supervisors and to maintain these staffing levels for a period of seven years thus reducing reliance on agency nursing staff;

- Implement continuous and ongoing training in delivering appropriate, safe and timely care to the residents;

- Hire a full-time permanent Compliance and Risk Management Officer to oversee a robust compliance program;

- Establish the Medford Resident Care Fund with a total of $9.1 million dollars to finance the quality of care reforms and improvements recommended by the Independent Operator;

- Hire an Independent Financial Monitor to administer the Resident Care Fund;

- Return over $10 million in restitution to the Medicaid Program.


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