New York has reached a $12 million settlement with the Van Duyn Center for Rehabilitation and Nursing in Syracuse following a several years-long investigation into neglect, abuse, and financial fraud. The settlement represents the largest agreement her office has reached with a nursing home to date.
Van Duyn’s owners, Efraim Steif and Uri Koenig, purchased the facility in 2013 and according to Attorney General Letitia James’ office, they diverted tens of millions of dollars from resident care. The state’s investigation found the owners drained resources through inflated rent payments using Medicaid and Medicare funds and reportedly paid themselves salaries for work they did not perform.
“For years, they pocketed millions of dollars in taxpayer funds while neglecting the residents they were entrusted to care for,” James announced Monday. “These New Yorkers endured horrendous conditions, leading to significant trauma, hospitalizations, and even death.”
Under the settlement, $10 million will go into a dedicated fund for reforms aimed at improving resident care and staffing levels. Another $2 million will return to the New York taxpayers’ funded Medicaid program. Independent healthcare and financial monitors will oversee compliance and ensure that the funds are used exclusively to improve conditions at the facility.
Family members of former residents joined the announcement, including Caitlin Pavlides, whose late aunt suffered severe medical neglect at the facility. “She was robbed of a fighting chance to recover, and we were robbed of her,” Pavlides said, recalling that her aunt’s untreated surgical wound led to infection, sepsis, and an unneeded surgery; she died at the age of 53.
“This sends a powerful message not just to this facility, but all nursing homes across the state,” she said, “Neglect will not be tolerated. Vulnerable lives matter and that we will stand up, speak out and hold every institution accountable for the care our loved ones so deserve.”
Pavlides' aunt was one of many victims neglected and abused at Van Duyn.
Attorney General James listed just some of the cases.
- One resident was improperly left unattended in the bathroom. She tripped and was strangled by her nightgown caught on a doorknob.
- Another resident was found dead after not receiving their medication and adequate care.
- A third resident was admitted to the hospital with a bacterial infection, bed sores and dehydration after Van Duyn staff failed to respond to their rapidly deteriorating condition.
While the conduct was egregious, she explained that her office did not believe it rose to the level of criminal malfeasance. Instead, the focus was on securing a settlement that would immediately improve conditions at the facility.
“I don't know if they intentionally engaged in neglect or abuse; we know that was the result. Whether or not they intended that is something that we would have to prove at trial. And it could last for years as opposed to getting immediate relief for these individuals,” James said.
“We wanted a quick and immediate settlement to address the needs of those 498 residents,” she added
Outside of the $12 million dollar allocation, the settlement also requires Van Duyn to undergo sweeping reforms:
- Independent Health Care Monitor (IHM): Will oversee health care operations, staffing levels, and ensure improvements are implemented. The monitor can require increased staff pay and must approve hires for administrators or medical directors. Failure to follow the IHM’s recommendations could result in fines of $5,000 per day.
- Independent Financial Monitor (IFM): Will oversee the facility’s finances, prevent fraud, and ensure Medicaid funds and the new Resident Care Fund are used only to improve care.
- Chief Compliance Officer: Van Duyn must hire a compliance officer to ensure adherence to the monitors’ requirements and federal/state laws.
- Restrictions on Sale or Closure: The owners cannot sell or close the facility for at least five years and must maintain recommended staffing levels for at least two years beyond the settlement’s terms.
James emphasized that the Van Duyn case reflects a systemic issue in nursing homes statewide and that Van Duyn might not be the last nursing home on her radar in need of reform. “We're not finished yet and it's all across the state from Long Island all the way to Buffalo,” she said.
