New York State is so large and diverse and health care is a priority. Whether it is a hospital, a clinic, a rehabilitation center, a nursing home or a private medical practice, it can get confusing when entities like Medicare and Medicaid are billed for services rendered. In some instances, there are allegations of fraud.
Since these cases can be costly, financially and personally, it is imperative for those accused to have a viable legal defense. This is true whether it is a doctor or an individual or a corporation that owns the facility. Recently, one New York nursing home was confronted with allegations of financial wrongdoing in a variety of ways.
New York Attorney General sues nursing home over alleged financial fraud
Owners of a nursing home located in Woodbury, New York, are accused of having funds paid to Medicaid and Medicare diverted to them. It totaled more than $22 million in payments. In the report issued by Attorney General Letitia James, the facility has more than a dozen companies and three separate scams to make it look as if services were being paid for the nursing home when the owners were taking it.
There was also a labyrinth-like strategy used to hide who really owned the nursing home. In addition to the alleged financial wrongdoing, the residents at the facility were said to have suffered the ramifications by not being given the care they were supposed to. They were left unclean, had faulty equipment and were not given the medical care they required.
From 2016 to 2021, the owners were said to have transferred more than $42 million to them and their associates. This included rent that was essentially paid to themselves; consulting fees; a fraudulent promissory note; and false insurance claims.
Financial fraud cases need a qualified legal defense
These types of accusations not only have the potential to lead to criminal charges but they can also do significant damage to a business. Health care fraud and other types of financial misdeeds can result in major consequences, including jail time, fines, loss of licenses and more.
Just because a person or entity is accused of financial wrongdoing and other legal violations does not mean they are completely accurate. There could be an individual or a group within the company who were using these tactics without the knowledge of others. It might have been a bookkeeping error. Since these cases are taken so seriously, it is critical to have comprehensive legal assistance to be protected and fight back.