New Jersey Nursing Home Operators Defrauded State Medicaid Program while Subjecting Residents to Unsanitary Conditions, Neglect, and Abuse:
Among the New Jersey homes owned and run by three men who used public funds to line their pockets while subjecting residents to nursing home malpractice were the two worst performing facilities in the state: South Jersey Extended Care in Bridgeton and Sterling Manor in Maple Shade.
In a stunning instance of nursing home malpractice, three men operating a group of New Jersey nursing homes funneled millions of Medicaid dollars into their own pockets while neglecting their residents, says an article in the New York Times. Following a five-year investigation from April 2018 to March 2023, a recently released report by the state comptroller’s office ultimately revealed that, over five years, Mordechay Weisz, Steven Krausman, and Michael Konig took from ten New Jersey nursing home facilities $253 million, 76 percent of which came from Medicaid. The men have been notified they will be barred from being Medicaid providers, said the article.
“These individuals were able to amass a fortune by pretending to be independent parties,” said Kevin Walsh, acting New Jersey state comptroller. “In reality, they operated as one unit, providing terrible care to the sick, the elderly, and the poor, so they could make big profits.”
After having been barred from operating nursing homes in Connecticut and Massachusetts since the mid-1990s due to a “long, troubled history” that involved homes forced into sale, taken over by the state, or shut down for serious evidence of nursing home malpractice, Mr. Konig dodged scrutiny in New Jersey by transferring his ownership of New Jersey nursing homes to Mr. Weisz, who is his cousin. Acting strictly as a “straw owner,” Mr. Weisz entered into multimillion-dollar contracts with companies owned and controlled by Mr. Konig and another relative, Mr. Krausman, for goods and services that were never provided.
In the meantime, says the report, residents at the nursing homes endured terrible conditions amounting to nursing home malpractice. Two of the homes owned by Konig, Weisz, and Krausman were South Jersey Extended Care in Bridgeton and Sterling Manor in Maple Shade, both of which have repeatedly received single-star ratings from the federal government. According to state inspection reports, the following are examples of neglect and abuse amounting to nursing home malpractice that occurred at South Jersey Extended Care:
- a bedroom infested with flies and reeking of urine
- a filthy refrigerator
- a broken toilet that went unfixed for days
- a resident with dementia locked into a bedroom by a nurse’s aide, who tied the door shut with a trash bag
- a wheelchair-bound resident “roughly handled” by a staff member, causing the resident to fall out of the wheelchair and be hospitalized with an abdominal injury
- residents going without medications for hours
- no resident access to a licensed director of nursing or a social worker
- The director of nursing refusing to answer questions about being arrested on charges of forging prescriptions, leading to her license being suspended
The aforementioned examples of nursing home malpractice encompass a spectrum of bad practices that equal nursing home neglect and abuse. If you’re concerned about dangerously low staffing, staff-on-resident abuse, or any illegal practices amounting to nursing home malpractice in the home where your loved one resides, or if your loved one has been the victim of circumstances requiring the services of a wrongful death attorney, be sure to reach out to an experienced nursing home malpractice and wrongful death attorney right away.
When South Jersey Extended Care began failing financially and reported $4.8 million in losses between 2018 and 2022, Mr. Weisz extracted $1.3 million from the facility; in the meantime, the companies owned by Mr. Konig and Mr. Krausman took in $45.5 million by raising prices at other homes.
Earlier in December 2024 the three men were notified that all Medicaid funding for their nursing homes will be terminated after 60 days and that they will no longer be permitted to be involved with New Jersey’s Medicaid program. According to the article, the number of New Jersey nursing home residents impacted by the decision is unknown; the state comptroller’s office says the state is working to ensure they are cared for. While the comptroller’s office continues its investigation, further monetary penalties and administrative sanctions may be imposed.
Your Advocate Against Nursing Home Malpractice and Wrongful Death
Attorney Brian P. Murphy is dedicated to protecting the safety and preserving the rights of residents in Pennsylvania, Philadelphia, or New Jersey nursing homes. Your loved one should not need to suffer as a result of a facility being mismanaged by negligent operators, which could lead to such consequences of nursing home malpractice as bed sores, nursing home injuries, or even wrongful death. Attorney Brian Murphy has years of experience taking to task negligent nursing homes in Pennsylvania, Philadelphia, and New Jersey. As a nursing home malpractice and wrongful death attorney, he holds Philadelphia/PA or NJ nursing homes accountable for all types of nursing home malpractice. Should you find yourself needing to contact a nursing home malpractice and wrongful death attorney, call Brian Murphy today to discuss your legal options.
