NY nursing home operator to pay $6.5 million after being busted by an undercover senior

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A New York-based long-term care company has agreed to a $6.5 million settlement with the state over practices at an adult day care location, Attorney General Eric T. Schneiderman announced Tuesday.

The investigation involved undercover work by a “healthy and vibrant” older adult, who presented himself as a candidate for the adult day care services, according to Schneiderman's office. Videotape caught employees falsifying documentation to ensure the man qualified for services that would be reimbursed by Medicaid, the AG's office stated. Four workers at the Northern Manor Adult Day Health Care Program have been charged for their alleged roles in the fraud. Each faces four years in prison if convicted.

Schneiderman also brought separate civil charges against Northern Manor Multicare Center Inc., a long-term care facility in Nanuet, which operated the adult day facility in Brooklyn. The company admitted that it ran the adult day care without a qualified social worker on staff and took on more registrants than its certification allowed for, according to the AG's office. It will close the Brooklyn operation under the settlement terms.

Northern Manor had not issued a statement about the settlement as of press time, but a statement likely is forthcoming, a spokesman told McKnight's.
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