New York Attorney General Letitia James has secured a $1.3 million settlement from the Center for Disability Services Holding Corporation, which operates St. Margaret’s Center, a pediatric nursing facility in Albany. An investigation by the Attorney General’s office and the U.S. Attorney’s Office for the Northern District of New York found a pattern of neglect and violations of federal and state nursing home regulations at St. Margaret’s, affecting chronically ill and disabled children who rely on Medicaid for healthcare services.
According to the Attorney General’s office, residents, particularly children and their families, are entitled to high-quality care. A multi-year investigation through 2023 found that St. Margaret’s Center frequently submitted claims certifying compliance with required care standards while residents’ well-being was affected by understaffing and insufficient supervision. Department of Health inspections identified serious issues, including children left unsupervised, deficient respiratory care, and medication errors.
The settlement holds St. Margaret’s accountable, with the center acknowledging wrongdoing and agreeing to pay $1.3 million directly to Medicaid—$707,200 to New York state and $592,800 to the federal government. The agreement also includes a five-year oversight period by the Health and Human Services Office of the Inspector General to ensure the facility maintains care standards.
James has continued her efforts to investigate and address nursing home misconduct across New York. The St. Margaret’s case is the fifth action by her office against facilities accused of resident neglect. Previous actions resulted in settlements and reforms at facilities including Van Duyn, Centers for Care, LLC, affiliated nursing homes, and Fulton Commons.
Individuals with information or concerns about nursing home conditions are encouraged to file confidential complaints. Under the New York False Claims Act, whistleblowers can bring actions on behalf of the government and may be eligible to share in any financial recovery. The Medicaid Fraud Control Unit accepts reports through its hotline or online services.
