South Jersey Extended Care and its sister facility, Sterling Manor, have been considered among the worst of the worst nursing homes in New Jersey for years. And now we know why. We knew these nursing homes were problematic, and we have been monitoring them and advocating for the residents’ interests. But I was surprised by the extent of the financial games as outlined by the Acting State Comptroller today.
The Office of the State Comptroller (OSC) report on South Jersey Extended Care offers shocking evidence of how bad actors can operate nursing homes in ways that line their pockets while undermining the well-being of residents entrusted to their care.
South Jersey Extended Care is a textbook example of this and the Comptroller has the receipts. I am pleased that the Comptroller is suspending the owners and operators of South Jersey Extended Care and Sterling Manor from the Medicaid program. In 60 days they will no longer be able to put nursing home residents at risk through their systemic neglect.
But there are most assuredly more owner/operators in this state who are running the same scam. While this facility racked up violations and earned the lowest possible federal quality rating year in and year out, the facility's owner and principals pocketed millions in hidden profits by overpaying their own related companies for various services that were provided, often poorly, to the residents.
Most of that money comes from federal and state sources. In other words, the taxpayers.
The operators of South Jersey Extended Care put residents at risk for years by deliberately understaffing. The OSC examined 75 days over a two-year period and found that the nursing home failed to provide even half of the required staffing on those days.
Understaffing is at the root of every quality-of-life and quality-of-care issue in nursing homes. People living in long-term care typically need assistance with activities that many of us take for granted: Getting in and out of bed; going to the bathroom; eating; taking medication. When a nursing home is understaffed, residents suffer, period.
As taxpayers, we should be angry that these people misused our money. And as humans, we should be infuriated that they were careless with the well-being and dignity of the residents.
There is a growing body of evidence that the practices highlighted by the OSC are far from unique and will only spread as we anticipate weakened enforcement at the federal level coupled with more corporate consolidation and private equity investment in New Jersey’s nursing homes.
I commend the OSC for this in-depth review, which underscores the need for new resources to better scrutinize nursing homes, an investment that would be money very well spent when we are able to recoup or prevent the type of profit extraction highlighted by the OSC report.
Bottom line: New Jersey needs greater visibility into nursing home finances. We need audited, consolidated financial statements that account for each nursing home and every vendor with whom they do business, especially those that share a common owner or administrator.
Bills pending in the state Legislature — Assembly Bill A1872 and Senate Bill S1948 — would offer unprecedented insight into nursing homes’ operations and finances, enabling us to determine what it truly costs to provide quality resident care, how much the nursing homes take in, and where that money goes.
Unfortunately, but not surprisingly, these bills are strongly opposed by the associations representing nursing home owners. Still, the state legislature must act to the give state government the tools needed to more effectively regulate these businesses. We need to follow the money.
Read the OSC report on South Jersey Extended Care.
About the New Jersey Long-Term Care Ombudsman
The Office of the New Jersey Long-Term Care Ombudsman is an independent state agency dedicated to the mission of advancing the rights, dignity, and self-determination of adults living in long-term care, including nursing homes, assisted living, and residential health care facilities. Learn more.
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Official Site of The State of New Jersey
