Originally Posted on January 25, 2016

Centerlight Healthcare to pay $47 million for improperly using social day care centers to enroll ineligible members

NEW YORK- Today, Council Member Margaret Chin applauded a $47 million settlement between Attorney General Eric Schneiderman’s office and Centerlight Healthcare over allegations that the senior healthcare provider had fraudulently billed Medicaid for services that were not given to more than 1,200 patients.

“Healthcare providers like Centerlight that seek to take advantage of the skyrocketing demand for social adult day care services are not just defrauding the system – they are betraying the trust of the elderly patients they serve. Social adult day care programs provide essential services to thousands of functionally impaired older adults throughout our city, and I congratulate Attorney General Schneiderman and his staff for their efforts to protect these vulnerable New Yorkers,” said Council Member Margaret Chin, chair of the Council’s Committee on Aging. “As New York City’s older population continues grow significantly over the next few decades, a greater number of older adults and their families will look to benefit from social adult day care programs. That is why I authored legislation establishing the Office of the Social Adult Day Care Ombudsperson to receive and investigate complaints of violations. One provider giving seniors substandard and unsafe care is one provider too many. Together with other advocates for senior services, I will continue the fight to make sure that adult social day care providers in New Yorks City are compliant with state standards.”

In addition to its payment of the $47 million under the settlement, CenterLight is entering into two-year agreement with an independent compliance monitor and the Attorney General’s Medicaid Fraud Control Unit. That agreement requires CenterLight to comply with all terms of its Select Medicaid Managed Long Term Care Plan contract and New York State policies, and monitor and revise compliance policies if necessary.