In many states, the transfer of ownership of a nursing home is a given: individuals or a company buy a nursing home, inform the state of the transfer of ownership, and get approval for Medicaid participation for the new owners. Not so in New Jersey. Citing authority to review Medicaid applications of high-risk providers pursuant to 42 C.F.R. §§455.450, 424.518, in accordance with the state’s Medicaid Program Integrity and Protection Act, N.J.S.A. 30:4D-53 to -64, Acting State Comptroller Kevin D. Walsh and Director of the Medicaid Fraud Division, Josh Lichtblau, have denied the Medicaid applications from new owners, pursuant to N.J.A.C. 10:49-11.1(d)(20), (22), and (23), in at least two instances, both dated May 27, 2025. In both denials (See May 27, 2025 letter and May 27, 2025 letter), the State officials cite the new owners’ poor record in other facilities they own (in New Jersey and other states), including their high number of Special Focus Facility candidates and the high number of the most serious deficiencies (called immediate jeopardy) cited in their facilities. The denials also cite a new owner’s fraudulent conduct in a New York nursing facility, as found by a state court, and failure to disclose material information in their applications.
The Center has written before about the New Jersey State Comptroller’s actions to protect nursing home residents:
- “New Jersey State Comptroller Protects Nursing Home Residents Again” (CMA Alert, Feb. 20, 2025).
- “Effective Enforcement: Two New Jersey Nursing Home Operators Suspended” (CMA Alert, Dec. 19, 2024).
- “A Model for Nursing Home Enforcement” (CMA Alert, Mar. 21, 2024).
- “Second State Report Recommends Barring Medicaid Payments to Chronically Poor-Performing Nursing Facilities” (CMA Alert, Feb. 10, 2022).
June 18, 2025 – T. Edelman