Albany, NY (WRGB) — A pediatric nursing facility in Albany has agreed to pay $1.3 million to settle allegations it violated the federal False Claims Act by billing Medicaid for substandard care and falsely certifying it maintained an effective compliance program.

First Assistant U.S. Attorney John A. Sarcone III announced that the Center for Disability Services Holding Corporation, which operates St. Margaret’s Center, admitted that care provided at the facility did not consistently meet federal and state standards.

Sarcone said in a statement:

St. Margaret’s Center receives millions of public healthcare dollars to care for very sick children. Those children deserve quality care, and I expect all nursing homes will fulfill their obligations to vulnerable residents and the taxpayers who fund them. Thank you to the New York State Office of the Attorney General’s Medicaid Fraud Control Unit for their collaboration on this case.

According to federal officials, between January 2018 and December 2023, state inspections found the facility provided grossly substandard care. Investigators reported St. Margaret’s did not consistently maintain sufficient nursing staff, prevent significant medication errors, or properly provide respiratory and tracheostomy care.

During a 2022 inspection, the New York State Department of Health determined the facility failed to adequately supervise three residents, placing their health and safety at risk. The department placed the facility in “...

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