US EditionInside the ‘multi-billion-dollar game’ to funnel cash from nursing homes to sister companies
- In 2023, Kevin Walsh, serving as the interim State Comptroller of New Jersey, initiated the suspension of South Jersey Extended Care and affiliated entities from the state’s Medicaid program due to allegations of financial wrongdoing involving inflated charges paid to connected companies in Bridgeton, NJ.
- This action followed investigations revealing that owner Michael Konig, barred in other states, operated the facility through third-party firms, funneling millions in Medicaid funds while the home faced financial distress and risked closure.
- Analyses of federal reports and audits show that nursing homes nationwide, including South Jersey Extended Care, pay related parties billions above actual allowable costs, blurring financial transparency and enabling large owner profits at resident care’s expense.
- Experts describe this as a ‘Russian doll scenario’ where complex ownership structures and related-party contracts are legal but obscure financial flows, making oversight difficult despite regulators’ efforts and rising care complaints.
- The case highlights systemic issues of underfunding and regulatory gaps in long-term care, prompting calls for increased transparency and more taxpayer funding to improve quality and oversight nationwide.
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12 Articles
12 Articles
Inside the ‘multi-billion-dollar game’ to funnel cash from nursing homes to sister companies
It’s been called one of the worst nursing homes in New Jersey.For years it “siphoned” millions of dollars of Medicaid funds out of the home and to various side businesses, a state watchdog found, “leaving residents to live in a dismal, understaffed, and under-resourced facility.”
·Harrisburg, United States
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Coverage Details
Total News Sources12
Leaning Left1Leaning Right0Center8Last UpdatedBias Distribution89% Center
Bias Distribution
- 89% of the sources are Center
89% Center
11%
C 89%
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