Nursing home chain with 3 Central Mass. locations reaches $4 million settlement with AG
Published June 10, 2024
The Massachusetts Attorney General's Office announced Monday that it has reached a $4 million settlement with a Woburn-based nursing home conglomerate that operates 16 facilities across the state, including three in Central Massachusetts, after an investigation found inadequate staffing levels over the course of four years that led to neglect of residents.
The settlement is the largest involving a nursing home operator that has ever been reached by the Attorney Genera's Office, according to a press release from the office.
Included in the settlement is a requirement that the operator, Next Step Healthcare, pay for an independent monitor to review its facilities every six months and issue a report to the state.
Investigators launched the probe in 2019 amid complaints made to the state Department of Public Health that, even as it struggled with staffing levels, the facilities made employee cutbacks.
The lack of both certified and noncertified nursing assistants continued despite new state regulations promulgated in April 2021 that mandated specific staffing levels and requirements, the attorney general's office said. The state alleges that the reductions were made “without consideration of patient needs” and “led to resident neglect and harm.
“For years, Next Step prioritized profit over care by failing to adequately staff its nursing homes,” said Attorney General Andrea Joy Campbell. “I am proud of my team’s efforts in securing this settlement, the largest of its kind, which will send a message that this conduct will not be tolerated and ensure that Next Step’s facilities comply with staffing requirements moving forward, assuring that vulnerable elderly residents receive the proper care they need.”
Where are the 16 care facilities owned and operated by the company located?
Next Step Healthcare's co-founders and co-owners are Damien Dell’Anno and William Stephan. Three of its facilities are located in Worcester County, according to the company website: Fitchburg Healthcare in Fitchburg, The Hermitage Healthcare in Worcester and Westborough Healthcare in Westborough.
The other locations are in Attleborough, Fall River, Lee, Malden, Melrose, Middleborough, Newton, Norwood, Plymouth, Taunton and Walpole.
Calls to Next Step Healthcare were not immediately answered.
In addition to the lack of caregivers, the state alleges that submissions for reimbursement made to MassHealth violated the Massachusetts False Claims Act and Consumer Protection Act, as well as a law protecting seniors from elder abuse and neglect in nursing homes.
Most of the $4 million settlement, $3.25 million, will be managed by the independent compliance monitor and used over the next three years for staffing improvements, for both recruitment and retention of staff as well as to pay overtime, salary increases and to provide bonuses for staff.
According to the Attorney General's Office, the balance of the funds, $750,000, will be paid to the state and split between MassHealth and a special fund administered by the Department of Public Health that is designed to improve the quality of care at long-term care facilities.
The compliance monitor will be tasked with reviewing the quality of care offered at half of the company’s facilities; the state did not indicate which ones are being targeted.
Campbell launched an elder justice unit in 2023, her first year in office, to address issues pertaining to abuse, neglect and harm of the state’s senior citizens, within their homes and in nursing homes and long-term care facilities. In addition, Campbell has worked with state lawmakers to strengthen civil enforcement tools and joined a consortium of state attorneys general who sent letters to the federal Department of Health and Human Services and the Centers for Medicare and Medicaid Services advocating for stronger minimum staffing requirements at the facilities.
Campbell’s commitment to protecting Massachusetts seniors was echoed by Kate Walsh, secretary of the state Department of Health and Human Services.
“We have an obligation to create a safe and caring environment for some of our most vulnerable residents in Massachusetts,” said Kate Walsh, secretary of the state Department of Health and Human Services. “I am grateful to the Attorney General’s Office for their work to ensure protections and appropriate measures are taken when patients can’t speak up for themselves.”
TELEGRAM & GAZETTE
DAMIAN DELL'ANNO
Profile
Damian N.
Dell'Anno is the founder of Next Step Healthcare LLC, which was founded in 2007.
He is currently an Independent Director at Palomar Medical Technologies LLC since 2012 and a Director at Millennium Pharmacy Systems, Inc. He previously served as Chairman, President, CEO & Chief Operating Officer at Harborside Healthcare Corp.
from 1989 to 2007.
He was also the President & Chief Executive Officer at Genoa Healthcare LLC (Old) from 2008 to 2009.
Additionally, Mr. Dell'Anno held positions as Director-Budget & Reimbursement at Mediplex Group, Inc. in 1988, Director at Alliance For Quality Nursing Home Care from 2005 to 2007, and Chief Operating Officer & Senior EVP at Formation Capital LLC from 2007 to 2008.
Mr. Dell'Anno obtained his undergraduate degree from Suffolk University.
https://www.marketscreener.com/insider/DAMIAN-N-DELLANNO-A0BVDP/
Principal at Next Step Healthcare
William received a Bachelor of Arts degree from Hamilton College and a Master of Business Administration from Cornell University - Johnson Graduate School of Management.
2007-present (17 years)
https://www.zoominfo.com/p/William-Stephan/67195641
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