Nursing Homes Cheated Medicaid Through Neglect, N.M. Says

By Jeff Overley (December 5, 2014, 6:32 PM EST) -- New Mexico's attorney general on Thursday sued nursing home chain Preferred Care Partners Management Group LP for allegedly defrauding Medicaid by maintaining low staffing levels that resulted in patients wallowing in filth.

The lawsuit in state court alleges violations of the New Mexico Fraud Against Taxpayers Act and the New Mexico Medicaid Fraud Act, which include potential per-violation penalties of $10,000 that are similar to penalties found in the federal False Claims Act.

The allegations span 2007 to present, partly covering time before Preferred Care acquired nursing homes in 2012 from Cathedral Rock Corp., which in 2010 pled guilty to felony health...

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