New York reaps gains from sale of corrupt nursing home

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The state of New York will recoup $4.2 million from the sale of a Pennsylvania nursing home that was found guilty of defrauding Medicaid.

Heritage Nursing Home of Athens, PA, along with its owner, David Arnold of Athens, PA, last year was convicted of first-degree grand larceny and second-degree grand larceny. Between 1991 and 2000, the home charged Medicaid in New York state for treatments it never provided. Those included dental care, and occupational and speech therapies.

New York Attorney General Eliot Spitzer sued to recover New York's losses, prompting the sale of the 145-bed facility. Nursing homes were among other healthcare entities that committed Medicaid fraud, according to a report by The New York Times last month. Between 10% and 40% of spending on New York's $44.5 billion healthcare program may be lost to fraud and abuse each year, the report said.