Jeff Newman Law Annaounces $1.3 Million Settlement Of False Claims Act Case Against St. Margare’s Center For Failure To Properly Care For Residents Including Children

By Jeffrey A. Newman Esq.

The law firm Jeff Newman Law is pleased to announce the settlement of a False Claims Act (FCA) case against Center for Disability Services Holding Corporation d/b/a St. Margaret’s Center, a pediatric skilled nursing facility in Albany, New York, caring for chronically ill and disabled children and other residents. Whistleblowers Amanda Hodge and Jennifer Minshell, who worked at the facility as nurses, filed the qui tam action through the firm Jeff Newman Law on January 4, 2022. Following the filing of the lawsuit, an investigation by the New York Attorney General’s Office and the United States Attorney’s Office for the Northern District of New York revealed that, from 2018 through 2023, St. Margarets fraudulently certified it was meeting state and federal nursing home standards. The investigation revealed that St. Margaret’s was not adequately staffed, and one inspection conducted by the New York Department of Health (DOH) found that the facility had failed to supervise three children, immediately jeopardizing their health and safety. In other instances, St. Margaret’s residents did not receive appropriate respiratory care and suffered from medication errors.

Under a settlement, St. Margaret’s will pay $1.3 million to Medicaid and will also be monitored by the United States Department of Health and Human Services, Office of the Inspector General for five years.

The whistleblowers revealed the conditions of the facility to protect their patients. Had they not done so, it is likely nothing would have been done. Attorney Newman, who filed the case in 2022, thanks Assistant Attorney General Emily Auletta and Assistant United States Attorney Christopher Moran for their diligent oversight and comprehensive investigation of the case.

Click Here to view the original complaint

Click Here to view the state settlement agreement

Click Here to view the federal settlement agreement

If you have any questions, please contact Jeffrey Newman at 617-823-3217. Jeff Newman Law represents whistleblowers in cases involving Medicare and Medicaid fraud, customs and tariff fraud, export control fraud, and SEC and financial fraud.