New York Attorney General Letitia James announced significant reforms and financial penalties for Van Duyn Center for Rehabilitation and Nursing, as well as its owners, Efraim Steif and Uri Koenig, following an investigation into resident neglect and financial misconduct.
The Office of the Attorney General (OAG) found that the nursing home was severely understaffed despite millions of dollars in taxpayer funding meant for resident care. Residents endured unsafe conditions, resulting in hospitalizations, deaths, and trauma.
Under the settlement, Van Duyn and its owners will pay a total of $12 million, including $10 million to directly fund improved resident care and staffing. The OAG will also appoint an Independent Health Care Monitor (IHM) and an Independent Financial Monitor (IFM) to oversee health care operations and finances.
Resident Neglect Findings
The investigation found multiple cases of neglect:
- A resident died after staff failed to assist her, resulting in a fatal fall.
- Another was found deceased in rigor mortis due to inadequate monitoring and care.
- Residents were hospitalized for untreated infections, dehydration, and glucose issues.
- Some were inappropriately discharged and left at a Department of Social Services office without identification.
Financial Misconduct
Since acquiring the facility in 2013, Steif and Koenig withdrew millions through inflated rent, mortgages, and salaries, diverting Medicare and Medicaid funds away from resident care.
Settlement Terms
- Financial Penalties: $12 million total, with $2 million to Medicaid restitution and $10 million to a Resident Care Fund.
- Independent Health Care Monitor: Oversees all care operations, implements staffing improvements, and consults on hiring key administrators.
- Independent Financial Monitor: Ensures compliance with settlement, oversees finances and the Resident Care Fund, and prevents future fraud.
- Chief Compliance Officer: Responsible for implementing and monitoring recommendations and ensuring legal compliance.
- Other Reforms: The nursing home cannot be sold or closed for five years and must maintain staffing and supervision levels as recommended for at least two years. Violations carry steep financial penalties.
Attorney General James emphasized that the reforms and monitoring will ensure residents receive safe, dignified care while holding the owners accountable for past abuses.
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