- New York AG Letitia James has secured $6 million from three nursing homes in the Buffalo region, including Safire Rehabilitation of Northtowns, Safire Rehabilitation of Southtowns, and Williamsville Suburban Nursing Home (the Safire homes).
- The settlement agreement alleges that the nursing homes submitted tens of thousands of fraudulent claims to Medicaid to boost their revenue. A joint investigation between the AG’s Medicaid Fraud Control Unit and the US Attorney’s Office for the Western District of New York revealed that from July 1, 2016, through December 31, 2020, the Safire homes reported false information to increase their reimbursement rates from Medicaid. The investigation into the Safire homes began after a whistleblower filed a complaint in December 2020 under the qui tam provisions of the New York False Claims Act and the federal False Claims Act in the U.S. District Court for the Western District of New York.
- The settlement requires the Safire homes to repay a total of $9 million and implement new procedures to prevent false billing and ensure all residents get the proper services they need. The settlement also requires the Safire homes to admit wrongdoing and pay $6 million to Medicaid, of which $3.6 million will go directly to New York. The remaining $2.4 million will be paid to the federal government and an additional $3 million to the federal government for defrauding Medicare. Additionally, the facilities must adopt new policies and procedures to ensure that residents covered by Medicaid receive adequate services and that services are properly documented to prevent future fraud.