New York nursing home sued for fraud, neglect by state attorney general

The owners of a nursing home in Western New York allegedly “wove a complicated web of fraud” that resulted in patient neglect and caused the conditions that led to deadly problems exposed during the COVID-19 pandemic, New York Attorney General Letitia James alleged Tuesday in a new lawsuit.

The lawsuit, filed against the owners, operators, and related companies of The Villages of Orleans Health and Rehabilitation Center, said the defendants took advantage of the state’s Medicaid program to increase their personal profits, rather than use those funds for the intended purposes of staffing and patient care.

“Every individual deserves to live out their golden years in comfort and with dignity,” James said. “Yet the abject failure of The Villages and its owners to uphold their duty under the law caused residents to suffer inhumane treatment, neglect, and harm.”
Between 2015 and 2021, The Villages’ received more than $86 million in Medicare and Medicaid payments meant for resident health care. The lawsuit said the owners steered 20% of it into separate entities they formed to increase their personal profits. The result was insufficient staffing and low quality of care, the lawsuit said.