Attorney General Greg Stumbo Executes Search Warrant on Nursing Home

FRANKFORT, KY (April 4, 2006) – Attorney General Greg Stumbo announced today that agents of the Kentucky Bureau of Investigation have executed a search warrant of the Lakeside Heights Nursing Center in northern Kentucky. KBI agents conducted the search of the 160 plus bed Highland Heights facility over the course of the past two days, seizing facility records and computers.

Attorney General Stumbo’s Medicaid Fraud and Abuse Control division, working closely with the Department of Medicaid Services and the Office of Inspector General learned of allegations of rapidly deteriorating conditions at the home, causing residents actual harm and death, and that the potential for further serious harm or death existed. Allegations arose that vendors of critical services such as food and power were not being paid, that staffing levels were dangerously inadequate and that employees were having facility issued pay checks returned for non-sufficient funds.

On March 29, 2006, the Center for Medicare and Medicaid Services (CMS) in Atlanta notified Lakeside Heights’ administrator that its Medicare and Medicaid provider agreements were being involuntarily terminated and that it could no longer accept new admissions. This extraordinary step was necessitated because of the failure of Lakeside to correct resident conditions and remove the risk of immediate jeopardy to its charges. CMS will continue to pay for the care of the residents for 30 days in order to allow for an effective and orderly transfer of the residents.

While the investigation is currently continuing, it should be noted that under Kentucky law the knowing or wanton abuse or neglect of vulnerable adults are felonies, punishable by up to 10 years in prison. The submission of claims for Medicaid payments for care of persons actually neglected can constitute a felony fraud offense.

“It is extremely important to protect our state’s elderly and most vulnerable residents,” said Attorney General Stumbo. He continued, “If wrongdoing is determined after careful review of the seized records, my office will vigorously prosecute any and all persons found to be responsible.”

Suspected Medicaid fraud or patient abuse can be reported by calling the Attorney General’s tip line at 1-877-ABUSE TIP (1-877-228-7384).