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State settles with unlicensed Syracuse facility

The office of Attorney General Eric T. Schneiderman has reached a settlement with The Inn at Menorah Park in Syracuse.

The settlement resolves an investigation which found the Inn had been operating as an unlicensed adult care facility. Adult care facilities may not operate without first obtaining an operating certificate from the state Department of Health.

The settlement calls for the Inn to immediately retain a monitor to assist in evaluating and assessing its compliance with its responsibilities as a residential adult care facility. The Inn must also restructure its board of directors. The new board will be made up of at least five members, the majority of whom have not previously served on the board.

The inn must also pay a $20,000 fine to the state and is required to create a new fund to assist individuals who otherwise would not financially qualify for admission to the Inn. The assistance fund will be initially capitalized with no less than $110,000.

The settlement resolves a multi-year investigation by the state Department of Health and the attorney general’s Medicaid Fraud Control Unit of allegations that the Inn was operating as an unlicensed adult-care facility at a time when its application to become a certified adult-care facility had been rejected. The investigation found that the management of the Inn continued to operate with home health aides in a form consistent with the operation of an adult-care facility; however, it did so without the approval and oversight of the Department of Health.