Chicago nursing home owners rocked with $1.9 million settlement

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The managers of a now-closed Chicago nursing home have agreed to pay about $1.9 million to settle allegations of patient abuse and Medicaid fraud filed in a whistleblower lawsuit.

Former Maxwell Manor employees Joyce Toomey and Larry Austin alleged in a February 200 filing that between October 1998 and June 30, 2000, residents were routinely neglected, mistreated, sexually abused and untreated for mental and physical health and substance abuse problems. Toomey and Austin also accused the owners and managers of committing Medicaid fraud, billing the federal and state government for care that was never administered.

The federal government will receive $1 million of the settlement, the state about $610,000 and the two whistleblowers will share in $313,000. The facility's management company ABS Long-Term Care Management Co. Inc. and affiliate MBA-LTC did not admit wrongdoing in the case.

Former owners National Voluntary Health Facility No. 4 and Efforim Stein of Chicago have not yet settled but are still part of the case.