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Post date: September 27 2005

New York City Nursing Home To Repay Medicaid $2.3 Million

Attorney General Spitzer today announced that Terence Cardinal Cooke Health Care Center (Terence Cardinal), located at 1259 Fifth Avenue in Manhattan, has agreed to repay the State $2.3 million to settle claims that the nursing home had billed Medicaid for services provided to Medicaid patients on dates after the patients had died.

The overpayments were discovered as a result of an extensive audit of Terence Cardinal, which cooperated with the investigation, by Spitzer's Medicaid Fraud Control Unit (MFCU). That audit revealed that Terence Cardinal had billed for services claimed to have been provided to Medicaid recipients in 1999 after the patients had died. The investigation disclosed the billings resulted from errors that occurred following Terence Cardinal's implementation of a new computer billing system. In addition to reimbursing Medicaid for its losses, Terence Cardinal was required to paid interest to the Medicaid program at a rate of 9%.

This repayment will add to the over $200 million recovered by MFCU to date in federal fiscal year 2005. This is already double last year's figure of $79 million, which set a record for annual Medicaid recoveries by any state Medicaid Fraud Control Unit.

The investigation and audit was conducted by the Special Projects Unit of MFCU.