ALBANY, NY – The Center for Disability Services Holding Corporation d/b/a St. Margaret’s Center, a pediatric skilled nursing facility in Albany, is paying a hefty price for years of allegedly substandard care and fraudulent billing. New York Attorney General Letitia James today announced a $1.3 million settlement against the facility following an investigation that revealed systematic neglect of its vulnerable residents – chronically ill and disabled children – and a scheme to falsely claim compliance with state and federal regulations.
The investigation, conducted jointly with the United States Attorney’s Office for the Northern District of New York (NDNY), uncovered a pattern of understaffing and inadequate care at St. Margaret’s from January 1, 2018, through December 31, 2023. Despite receiving Medicaid funding, the facility allegedly failed to meet basic standards of care, putting the health and safety of its young residents at risk. Sources within the Attorney General’s office described a “culture of cost-cutting” that prioritized profits over patient well-being.
The Attorney General’s office detailed specific instances of negligence, citing a New York Department of Health (DOH) inspection that found the facility failed to properly supervise three children, “immediately jeopardizing their health and safety.” Further investigation revealed failures in respiratory care and medication errors, including two instances where a resident’s anti-seizure medication was not administered as prescribed. These failings were severe enough to land St. Margaret’s on the Centers for Medicare and Medicaid Services (CMS) “Special Focus Facility” list, reserved for the nation’s worst-performing nursing homes.
“New York nursing home residents, especially children and their families, always deserve high-quality care and attention,” Attorney General James stated. “For years, St. Margaret’s failed to follow the law and endangered vulnerable children with poor staffing and care. Our laws set clear standards to protect the health and dignity of nursing home residents, including youth, and I will not hesitate to take action when nursing homes violate these laws.” The settlement requires St. Margaret’s to admit wrongdoing and pay $1,300,000 to Medicaid – $707,200 to New York state and $592,800 to the federal government.
Beyond the financial penalty, St. Margaret’s will be subject to five years of monitoring by the United States Department of Health and Human Services Office of the Inspector General (HHS-OIG). This oversight will focus on ensuring the facility provides adequate care and complies with all applicable laws and regulations. The OIG will have broad access to records and the ability to conduct unannounced inspections. The settlement underscores the “special obligation” nursing homes have under New York law to provide the highest possible quality of life for residents, and to maintain sufficient staffing levels.
The case highlights a growing concern about the quality of care in pediatric skilled nursing facilities and the potential for fraud within the Medicaid system. While St. Margaret’s has agreed to the settlement, the families of the affected children are left to grapple with the consequences of years of alleged neglect. The Grimy Times will continue to follow this case and report on any further developments.
RELATED: St. Margaret’s Center Hit with $1.3M Fine for Resident Neglect
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Key Facts
- State: New York
- Agency: NY AG
- Category: Fraud & Financial Crimes
- Source: Official Source ↗
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