Chronic Understaffing at NJ Nursing Homes Leads to $2.1 Million Medicaid Payback
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July 19, 2025 -
KBA Attorneys -
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Chronic Understaffing at NJ Nursing Homes Leads to $2.1 Million Medicaid Payback
KBD Attorneys Calls for Accountability and Justice for Neglected Residents
Three New Jersey nursing homes—Barnegat Rehabilitation and Nursing Center, Belle Care Nursing and Rehabilitation Center, and Barclays Rehabilitation and Healthcare Center—are being held accountable for severe violations of state staffing laws. Following a thorough investigation, the New Jersey Office of the State Comptroller (OSC) has directed these facilities to repay over $2.1 million in Medicaid funds after uncovering that they failed to meet minimum staffing requirements every single day in July 2023.
This alarming revelation confirms what many families already fear: nursing home neglect due to chronic understaffing remains a crisis across the country. At KBD Attorneys, we see the consequences of these failures every day. Vulnerable residents suffer when nursing homes put profits over people—and we fight to make sure their stories are heard and justice is served.
Here is more information on the letters send to each of those facilities:
What Happened?
According to the OSC’s report, New Jersey law requires specific staffing ratios in long-term care facilities:
- 1 certified nurse aide for every 8 residents during the day shift
- 1 direct care staff for every 10 residents during the evening shift
- 1 direct care staff for every 14 residents during the night shift
OSC’s Medicaid Fraud Division reviewed payroll records, professional licenses, and staffing schedules for July 2023 and found all three nursing homes failed to meet these minimums every single day—a total of 93 shifts.
Here’s what the investigation revealed:
- Barclays Rehabilitation and Healthcare (Cherry Hill) failed to meet minimum staffing on 85 out of 93 shifts. One aide even continued to work for seven days after their certification expired.
- Barnegat Rehabilitation and Nursing Center failed 86 out of 93 shifts.
- Belle Care Nursing and Rehabilitation Center failed 83 out of 93 shifts, including three shifts with no staff present to care for 82 residents.
In response, OSC is demanding:
- $735,180 from Barclays
- $791,380 from Barnegat
- $647,304 from Belle Care
Additionally, OSC will withhold 10% of all future Medicaid payments to these facilities until full repayment is made.
A Systemic Problem with Real Consequences
The nursing home industry often claims that staffing mandates are too strict or financially burdensome. In fact, the Health Care Association of New Jersey—the industry’s lobbying arm—has sued to overturn these mandates altogether. But these staffing requirements were implemented for a reason: residents cannot survive without adequate care.
As Josh Lichtblau, Director of OSC’s Medicaid Fraud Division, put it:
“The minimum staffing requirements are clear, and they were put in place because residents rely on nursing home staff for their daily needs… Nursing home residents deserve adequate staffing, and the Medicaid program should demand nothing less.”
At KBD Attorneys, we agree wholeheartedly. Understaffing doesn’t just violate administrative rules—it harms real people. We’ve seen it lead to:
- Bedsores
- Malnutrition and dehydration
- Falls and fractures
- Delayed or missed medications
- Emotional trauma
- Death
When nursing homes are under-staffed, corners get cut. And when corners are cut, the people who suffer most are those who can’t speak up or protect themselves.
How KBD Attorneys Helps Victims of Nursing Home Neglect
KBD Attorneys has a proven track record of holding nursing homes accountable for neglect, abuse, and systemic failures. If your loved one was harmed in a facility that failed to meet legal staffing standards, you may be entitled to compensation for injuries, suffering, and wrongful death. Our experienced legal team investigates facility records, staffing logs, and Medicaid compliance to build a strong case.
Our nursing home litigation practice includes:
- Staffing-related neglect and abuse
- Medication errors
- Falls and preventable injuries
- Infections and untreated wounds
- Wrongful death claims
Facilities Must Be Held Accountable
The homes involved in the OSC report did not dispute the findings. Instead, they claimed the staffing requirements were “too onerous” and “unconstitutional.” But the law is clear—and so is the damage. For Belle Care to have zero direct care staff on duty for 82 residents during multiple shifts is an egregious failure of responsibility.
We cannot allow facilities that take public funding through Medicaid to turn around and neglect the very residents they’re paid to care for. When they do, civil lawsuits are often the only effective way to change behavior and protect others.
Stay Informed: Follow Our Updates
We’ve created several dedicated pages to help families stay informed and take action:
These pages are updated regularly with real-time news, legal resources, and updates about investigations, lawsuits, and new legislation.
Contact KBD Attorneys if You Suspect Neglect or Abuse
The OSC’s findings confirm what too many families already know: understaffing in nursing homes is not rare—it’s rampant. The $2.1 million payback order is a step toward accountability, but the real work begins with legal action that holds these facilities to account.
If your loved one resides in a nursing home or long-term care facility and you suspect neglect, contact KBD Attorneys immediately. We’re not just litigators—we’re advocates for vulnerable patients and the families who love them.
Remember, understaffing is a for of abuse. KBD Attorneys stands with victims of nursing home neglect and their families. If your loved one has suffered due to staffing failures, you are not alone—and you are not powerless.
Contact us today to learn more about your rights.
