Comptroller suspending Medicaid funding from 2 South Jersey nursing homes

DEPTFORD, New Jersey (WPVI) -- Citing health and safety violations and allegations of Medicare fraud in another state, the New Jersey comptroller is pulling Medicaid funding from two South Jersey nursing homes.

Hammonton Center for Rehabilitation and Healthcare and Deptford Center for Rehabilitation and Healthcare will be suspended from Medicaid funding by the State of New Jersey on May 24 unless the current owners step away through divesting or having an independent monitor come in to handle operations.

"What generally happens in those situations is that the owners will sell to another company," said New Jersey State Long Term Care Ombudsman Laurie Facciarossa Brewer. "If that happens, the transitions when these changes in ownership occur are fairly smooth. We do keep an eye on those changes in ownerships."

The company that owns the two nursing homes - Centers Health Care - is being sued by the State of New York, accusing owners of stealing Medicare and Medicaid funds and mistreating patients.

According to a statement from the company: "Centers Health Care does not comment on pending litigation. We will continue to fight the New York Attorney General's spurious claims and will respond to the New Jersey copycat claims in due course."

The suspension of funding is temporary, pending completion of the state comptroller's investigation and New York State's legal proceedings.

So what happens to patients in these nursing homes?

New Jersey's long-term care ombudsman says for the time being, patient care should not change, and they do not have to leave. But those with concerns can reach out to the state.

"We will work with those residents if they decide that they want to leave. If in fact it comes to the point where the facility is closing, obviously we would be intensively involved in finding better placements for people," said Facciarossa Brewer.

She says shutting down would be a last resort situation.

Families can contact the Office of the Long Term Care Ombudsman using the following information:

Telephone: 1-877-582-6995

Email: ombudsman@ltco.nj.gov

Website: www.nj.gov/ltco

Online web complaint form: https://www.state.nj.us/ooie/contact/contact-complaint.shtml