State Claims ‘Massive Fraud’ by Local Facility

MarySusan Hoffman/THG Hammonton Center is one of two South Jersey facilities that could lose New Jersey Medicaid funding in May, according to the Office of the State Comptroller (OSC).

HAMMONTON—Hammonton Center for Rehabilitation and Healthcare will lose New Jersey Medicaid funding on May 24, according to the Office of the State Comptroller (OSC).

The center is one of two facilities being suspended for what the state is calling evidence of “massive fraud” and poor care. Deptford Center for Rehabilitation is the other site to be suspended unless a monitor is appointed or some other type of action is taken to transfer control away from the current owners.

The action was announced on Jan. 25. The OSC sent letters to owners Kenneth Rozenberg, Beth Rozenberg, Daryl Hagler and their entities that they would be suspended from New Jersey Medicaid in 120 days, according to a Jan. 25 press release.

The suspensions are temporary, pending completion of the OSC’s investigation and completion of New York State legal proceedings against the ownership. According to the release, Hagler and the Rozenbergs were accused of “siphoning $83 million from nursing homes funded by New York Medicare to enrich themselves.”

In July of 2023, a New York Supreme Court Judge found evidence of “repeated and persistent fraud” so credible that she appointed a financial monitor and health monitor to assess and manage operations, according to the release.

“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. 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,” Acting State Comptroller Kevin Walsh said.

Jeff Jacomowitz, a spokesman for Centers Health Care, did not respond to inquiries from The Gazette, but told NJ.com that the nursing homes would not comment on pending litigation.

“We will continue to fight the New York Attorney General’s spurious claims and will respond to the New Jersey copycat claims in due course,” Jacomowitz told NJ.com.

According to the OSC, “the New Jersey facilities, Hammonton Center and Deptford Center, have been cited repeatedly for serious health and safety violations that negatively impacted residents’ care. Both Hammonton Center and Deptford Center have received the lowest possible quality rating from the federal Centers for Medicare and Medicaid Services. The Department of Health issued Hammonton numerous penalty notices for significant deficiencies identified during survey inspections. OSC’s letter also advised that the nursing homes may continue to operate with Medicaid funds if the current owners entirely disassociate from these facilities—meaning they divest ownership or the facilities are placed under the control of an independent monitor or receiver so that the suspended parties have no role in providing services to residents, no access to or authority over Medicaid funds, and do not financially benefit from Medicaid.”

According to Hospital-Data.com, Hammonton Center houses 158 residents.