Patapsco Healthcare Agrees to $200,000 Settlement and Corporate Oversight for Substandard Care

Patapsco Healthcare has reached a $200,000 settlement with the Maryland Attorney General’s office to resolve allegations of providing substandard care to residents, as detailed in a recent press release. The agreement includes a financial payment and mandates four years of corporate oversight through a third-party monitoring company, aimed at improving the quality of care at the facility. This development follows an investigation by the Attorney General’s Medicaid Fraud and Vulnerable Victims Unit (MFVVU).

The settlement comprises $100,000 to be paid by Patapsco Healthcare for a quality improvement plan, which will be overseen by the Office of the Attorney General. An additional $100,000 will be remitted as restitution to the state’s Medicaid program. The investigation into Patapsco Healthcare was initiated due to concerns about the facility’s adherence to the Maryland False Health Claims Act, with the MFVVU’s findings indicating systemic failures that negatively impacted residents.

The MFVVU’s investigative process involved multiple components, including a site visit conducted as part of the Long-Term Care Strike Force initiative, interviews with residents, and a thorough review of survey reports from the Office of Health Care Quality. These reports documented a range of deficiencies within the facility. Furthermore, resident medical records were examined as part of the investigation.

Evidence uncovered during the investigation highlighted significant issues in patient care. These included serious inadequacies in wound care, which led to resident hospitalizations. The facility also reportedly failed to provide residents with adequate nutrition and hydration, and numerous regulatory violations compromised overall patient care. The investigation also identified a pattern of preventable falls among residents and instances where the facility failed to prevent residents from overdosing on opiate medications.

The MFVVU concluded that the extent of these deficiencies signaled a level of substandard care for Medicaid recipients at the Patapsco facility, constituting a fraud against taxpayers who fund the program. To address these issues and ensure lasting improvement, the MFVVU stipulated that a quality improvement agreement be a central component of the monetary settlement. This agreement will enable the state to regularly monitor key aspects of the facility’s operations through the activities of an independent third-party monitor. The monitoring process will include unfettered access to corporate documents, medical files, and facility staff. The agreement also stipulates that Patapsco Healthcare must implement necessary improvements if continuing problems are identified, under penalty of facing renewed legal scrutiny.

The investigation was significantly aided by Maryland’s Long-Term Care Strike Force, an innovative multi-agency collaboration spearheaded by the MFVVU. This Strike Force brings together various state entities, including Adult Protective Services and the Long-Term Care Ombudsman, to conduct unannounced visits to facilities where widespread care failures have been reported. During these coordinated visits, Strike Force members are able to provide immediate assistance to residents while simultaneously gathering crucial evidence of institutional deficiencies. This rapid assessment capability allows for swift coordinated responses, enhances inter-agency intelligence sharing, and facilitates accountability for negligent parties. The Strike Force addresses both immediate resident needs, such as emergency referrals for appropriate assistance and relief, and longer-term systemic problems requiring sustained solutions, such as the independent monitoring now in place at Patapsco Healthcare. This approach has previously led to a $1.28 million settlement with Elkton Nursing and Rehabilitation Center.

The Maryland Office of the Attorney General, Medicaid Fraud and Vulnerable Victims Unit, receives a substantial portion of its funding from federal grants. For Federal Fiscal Year 2025, 75 percent of its funding comes from the U.S. Department of Health and Human Services under an award totaling $6,845,828. The remaining 25 percent, amounting to $2,281,939 for FY 2025, is provided by the State of Maryland.

Article by Mel Anara, based upon information from the Maryland Attorney General’s Office.

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