Press Release: Major Fraud Uncovered at Infamous New Jersey Nursing Home
New Jersey’s South Jersey Extended Care has been labeled one of the worst nursing facilities in the state, with allegations of severe financial misconduct. A recent report by Acting State Comptroller Kevin Walsh reveals the facility siphoned millions in Medicaid funds to affiliated businesses, compromising care for its residents. "This was a massive scam," Walsh stated, identifying a network of operators who provided subpar services in exchange for substantial profits.
Over $13 million in contracts were reportedly funneled to companies owned by associated parties, inflating costs for basic supplies and services. The report indicates that while the state allocates funds for residents’ care, these resources were misappropriated towards owner distributions and management fees.
As part of a broader concern, studies show that over 60% of nursing homes nationwide recorded inflated profits alongside high operational losses. The Nursing Home industry has been criticized for lack of transparency, operating with minimal regulatory oversight.
Following these revelations, New Jersey is pushing for suspensions from Medicaid for implicated individuals and is in the process of appointing a receiver to manage South Jersey Extended Care amid its financial distress. Efforts to ensure accountability within the nursing home industry continue as the state confronts systemic issues impacting care and safety for the elderly.
Note: The image is for illustrative purposes only and is not the original image of the presented article.
