Two South Jersey Nursing Homes Involved In Fraud, Suspended From Medicaid

Daryl Hagler and Kenneth and Beth Rozenberg were notified of the suspension on Thursday, Jan. 25, the state comptroller's office announced. 

They are the owners of the Hammonton Center for Rehabilitation and Healthcare, and the Deptford Center for Rehabilitation and Healthcare.

The three received letters that their entities would be suspended from the state's Medicaid program on Friday, May 24. The Medicaid fraud division of the comptroller's office cited poor conditions at the nursing homes and "evidence of massive Medicaid fraud" in New York.

Hagler and the Rozenbergs were accused of taking $83 million from nursing homes funded by New York's Medicare and Medicaid programs. A New York State Supreme Court judge appointed a financial monitor and health monitor in July 2023.

The state comptroller's office said the Hammonton and Deptford nursing homes have repeated health and safety violations. The centers have also received the lowest rating from the federal Centers for Medicare and Medicaid Services.

New Jersey's health department also issued the Hammonton nursing home several penalty notices for "significant deficiencies identified during survey inspections."

"When there is evidence of fraud of this magnitude, and when a judge has acted to prevent further siphoning and self-dealing, we have a duty to act," said acting New Jersey state comptroller Kevin Walsh. "To protect New Jersey Medicaid and the residents who rely on it, we must stop the flow of Medicaid funds to these individuals, and we must require them to step aside."

The letter from the state comptroller's office also said the nursing homes can continue to operate with money from Medicaid if the owners separate themselves from the facilities. They must divest ownership or the centers must be placed under the control of an independent monitor.

The New Jersey Medicaid suspension is temporary, pending the completion of the New Jersey comptroller's office investigation and legal proceedings in New York.

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