The government alleged that the skilled nursing facility located in Albany, New York, billed Medicaid for care that was “grossly substandard and, therefore, worthless.”

The Center for Disability Services Holding Corporation, d/b/a St. Margaret’s Center (SMC), a skilled nursing facility located in Albany, New York, has agreed to pay $1.3 million to resolve allegations that it violated the False Claims Act by billing for “grossly substandard and, therefore, worthless” care and falsely attesting that it had promoted and maintained an effective compliance program that met all statutory and regulatory requirements. Although SMC had annually certified that it adopted and implemented an effective compliance program that addressed quality of care, New York States surveys and inspections revealed that SMC did not consistently provide sufficient nursing staff, ensure that residents were free of significant medication errors, or provide respiratory and tracheostomy care and suctioning, among other things. The resolution comes after two former employees filed a qui tam whistleblower complaint. (Settlement Agreement, Center for Disability Services Holding Corporation (Feb. 12, 2026).

As part of the Settlement Agreement, SMC admitted, acknowledged, and accepted responsibility for the following facts. SMC provides skilled nursing and rehabilitation services to chronically ill and disable children and other resident insured by the Medicaid program. Between Jan. 1, 2018, through Dec. 31,...

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