Maryland Nursing Home Agrees to $400,000 Settlement Over Substandard Care Allegations

The Maryland Attorney General’s Office has announced a significant settlement with Orchard Hill Rehabilitation and Healthcare Center, requiring the facility to pay $400,000 and undergo corporate oversight for three years. This agreement resolves allegations that the center provided substandard care to its residents, leading to violations of the Maryland False Health Claims Act. The settlement aims to ensure substantial improvements in the quality of care for vulnerable individuals entrusted to the facility.

The financial component of the settlement includes $325,000 designated for a quality improvement plan, which will be overseen by the Attorney General’s Office through a third-party monitoring company. Additionally, Orchard Hill will pay $75,000 in restitution to the state. The investigation, conducted by the Attorney General’s Medicaid Fraud and Vulnerable Victims Unit (MFVVU), was prompted by a review of survey reports from the Office of Health Care Quality that indicated numerous deficiencies at the facility. These reports, along with targeted discovery of staffing levels, personnel records, resident census data, and resident medical records, formed the basis of the investigation.

The MFVVU’s findings revealed serious issues concerning wound care, which in some instances led to hospitalizations. The investigation also uncovered failures to provide adequate nutrition and hydration to residents, numerous preventable falls, and overall inadequate staffing levels, all contributing to a compromise in patient care. The Attorney General’s Office determined that these substandard conditions amounted to a fraudulent use of taxpayer funds, as Medicaid recipients were receiving care that did not meet acceptable standards.

As part of the settlement, Orchard Hill has agreed to a quality improvement agreement. This agreement grants the state the authority to regularly monitor various aspects of the facility’s daily operations. This oversight will be facilitated through the third-party monitoring company and will include unfettered access to corporate documents, resident medical files, and facility staff. The agreement stipulates that Orchard Hill must implement improvements to address any continuing problems identified, or face potential renewed legal action. The Office of the Attorney General’s Medicaid Fraud and Vulnerable Victims Unit receives a significant portion of its funding from federal grants, with 75 percent supported by the U.S. Department of Health and Human Services.

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

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