New York Jewish health charity agrees to pay $47 million after settling fraud case

The charity acknowledged in a plea agreement that it had defrauded government health care program by placing over 1,000 ineligible members on its long-term care plans.

January 22, 2016 13:31
1 minute read.
Hadassah Medical Center

Hadassah Medical Organization’s woes are far from over.. (photo credit: MARC ISRAEL SELLEM/THE JERUSALEM POST)


Dear Reader,
As you can imagine, more people are reading The Jerusalem Post than ever before. Nevertheless, traditional business models are no longer sustainable and high-quality publications, like ours, are being forced to look for new ways to keep going. Unlike many other news organizations, we have not put up a paywall. We want to keep our journalism open and accessible and be able to keep providing you with news and analyses from the frontlines of Israel, the Middle East and the Jewish World.

As one of our loyal readers, we ask you to be our partner.

For $5 a month you will receive access to the following:

  • A user experience almost completely free of ads
  • Access to our Premium Section
  • Content from the award-winning Jerusalem Report and our monthly magazine to learn Hebrew - Ivrit
  • A brand new ePaper featuring the daily newspaper as it appears in print in Israel

Help us grow and continue telling Israel’s story to the world.

Thank you,

Ronit Hasin-Hochman, CEO, Jerusalem Post Group
Yaakov Katz, Editor-in-Chief


CenterLight Healthcare, a Jewish health care charity based in New York, has agreed to pay $47 million dollars in compensation to state and federal authorities after admitting to Medicaid fraud, the Forward reported Thursday.

The charity, formally known as Beth Abraham Family of Health Services, acknowledged in a plea agreement that it had defrauded the government health care program by placing over 1,000 ineligible members on its long-term care plans. It has agreed to pay $28 million to New York State and $18.7 million to the federal government, the Forward added.

Be the first to know - Join our Facebook page.

“It’s simple: CenterLight Health Care did not play by the rules,” said New York Attorney General Eric Schneiderman in a statement. “We won’t tolerate companies that seek to exploit the system for profit.”

After coming to terms on the agreement, CenterLight released a pre-written statement to the Forward stating that they were "pleased to reach this settlement" and were looking forward to "continued collaboration with the state as we carry our mission of helping New Yorkers in need.”

According to statements from the office of Schneiderman, and from US Attorney Preet Bharara, CenterLight enrolled 1,241 people who were found to be ineligible when they enrolled, or became ineligible and were not removed from the Medicaid subsidy.

Since 2013, CenterLight received $3,800 per month, a so-called “capitation payment,” for each person enrolled in its managed care plans through its chain of adult day care centers. The Forward noted that while Medicaid requires participants to be placed in nursing homes, CenterLight structured itself to avoid the stipulation.


Join Jerusalem Post Premium Plus now for just $5 and upgrade your experience with an ads-free website and exclusive content. Click here>>

Related Content

November 16, 2018
Miami Beach Jewish center vandalized with swastika and upside-down cross