The American Health Foundation (AHF), its management arm, and three affiliated nursing homes—Cheltenham in Philadelphia, Wilmington Place in Dayton, and Samaritan in Medina—will pay $3.61 million to settle allegations they billed Medicare and Medicaid for grossly substandard care between 2016 and 2018, officials announced Tuesday.
The Justice Department alleged these facilities failed to meet basic standards, including infection control, adequate staffing, and proper medication practices.
Specific claims included unsafe and unsanitary conditions, misuse of drugs, verbal abuse, neglect of personal property, and lack of psychiatric care. Cheltenham was cited for housing residents in pest-infested conditions; Wilmington and Samaritan allegedly failed to maintain proper care plans and assessments.
“Nursing homes are expected to provide their residents, which include some of our most vulnerable citizens, with quality care and to treat them with dignity and respect,” said Deputy Assistant Attorney General Brenna Jenny of the Justice Department’s Civil Division. “The Department will not tolerate nursing homes — or their owners or managing entities — abdicating these responsibilities and seeking taxpayer funds to which they are not entitled.”
As part of the settlement, AHF also entered into a five-year Corporate Integrity Agreement with the Department of Health and Human Services to improve care and safety.
The case, United States v. American Health Foundation Inc. (Case No. 2:22-cv-02344, E.D. Pa.), was handled by the DOJ’s Fraud Section and HHS’s Office of Inspector General.
The settlement resolves allegations only; no liability was admitted.