TRENTON—The Office of the State Comptroller (OSC) can suspend and disqualify New Jersey Medicaid providers, including nursing home operators, when they provide poor quality care, commit fraud, and/or take other actions that are harmful to residents or the Medicaid program.

On October 25, 2023, OSC through its Medicaid Fraud Division sent letters to the owners of Woodland Behavioral and Nursing Center, notifying them that OSC was seeking to disqualify them from New Jersey Medicaid for their complete failure to protect the health and safety of Woodland’s residents.  The Woodland owners– who also own Limecrest Subacute and Rehabilitation Center -- indicated they would appeal the disqualification. The disqualification is stayed, pending a legal resolution.

On December 14, 2023, OSC also sent letters notifying the owners they would be suspended from NJ Medicaid, effective in 100 days (March 23, 2024).  OSC gave the owners 100 days’ notice to divest their ownership in the entity that owns Limecrest. (This suspension, which stops the flow of Medicaid funds to suspended people and entities and prohibits these people/entities from having any involvement in a facility that receives Medicaid funds, is temporary, pending completion of the legal proceedings related to the disqualification.)

“Nursing home providers who fail to responsibly care for some of the state’s most vulnerable residents have no business being in the Medicaid program," said Acting State Comptroller Kevin Walsh.  “The State has an absolute duty to step in. That’s what we are doing, and we will continue to do.”

OSC has kept the Department of Health, Department of Human Services, and the Long-term Care Ombudsman informed throughout this process so that the respective agencies can take actions proactively to protect the residents of Limecrest.

In late November, the Department of Health stopped new admissions and required Limecrest to hire a consultant to run the facility after finding it failed to conduct COVID-19 testing and provide medication to prevent a deadly outbreak. “Over and over again, these owners have shown an egregious unwillingness or inability to protect the safety and well-being of residents in their facilities,” said Walsh. “Allowing them to continue to participate in Medicaid represents too grave a risk for New Jersey residents and the integrity of the Medicaid program.”

Sign up now for OSC's newsletter.  

To report government fraud, waste, mismanagement, or corruption, file a complaint with OSC or call 1-855-OSC-TIPS.