New Jersey cuts Medicaid funding for state's lowest-rated nursing home after fraud investigation

New Jersey has cut Medicaid funding for South Jersey Extended Care, the state's lowest-rated nursing home. A five-year investigation revealed the facility improperly collected millions while providing poor care, exploiting vulnerable residents. The state comptroller's report found that the operators, Steven Krausman and Michael Konig, created a fraudulent scheme to maximize profits. They used a straw owner to hide their control over the nursing home, which received $35 million in Medicaid funding. The investigation also uncovered that the facility was consistently understaffed and that hired staff were often unqualified. The report calls for legislative reforms to prevent fraud and improve oversight in nursing homes.