The operators of four nursing homes in New York have agreed to a settlement of $45 million in response to allegations of resident neglect and mistreatment. This announcement was made on Thursday by New York Attorney General Letitia James.

James had previously filed a civil lawsuit against the facilities, alleging that the owners and operators of Centers Health Care misused Medicaid and Medicare funds for personal gain rather than for the care of residents. The lawsuit highlighted issues of understaffing, which contributed to inadequate care for residents who reportedly suffered from living in poor conditions and were often left alone, leading to injuries.

As part of the settlement, Centers Health Care and its owners will allocate $35 million to enhance care and staffing for residents, along with an additional $8.75 million designated for restitution to the Medicare and Medicaid programs. Following the lawsuit’s filing, the court appointed independent monitors to oversee the nursing home’s operations and finances, and some reforms have already been initiated, as noted by the Attorney General.

“Centers’ owners operated the nursing homes with inadequate staffing so that they could pocket tens of millions of taxpayer dollars meant for resident care,” James stated in a press release. She emphasized that residents experienced severe hardships, and their families often remained unaware or disheartened regarding the condition of their loved ones.

In response, Centers Health Care expressed satisfaction with the resolution of the litigation, stating that the settlement dismisses all allegations of misconduct against the organization.

“Over the past thirty years, Centers has looked after thousands of residents in numerous facilities while adhering to the highest standards of care and resident well-being,” the company remarked. They also reiterated their commitment to fully comply with the settlement terms, which include a substantial investment in the care of residents going forward.