Attorney General Frosh Announces Settlement with Neiswanger Management Services, LLC in Resident Dumping Case

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Attorney General Frosh Announces Settlement with Neiswanger Management Services, LLC in Resident Dumping Case

Companies to Pay $2.2 Million and to be Prohibited from Operating Nursing Homes in Maryland; State Alleged that NMS Engaged in Unlawful Resident Evictions

BALTIMORE, MD (October 26, 2018) – Maryland Attorney General Brian E. Frosh today announced a settlement with Neiswanger Management Services, LLC (NMS), formerly an operator of five nursing facilities in Maryland, and its owner, Matthew Neiswanger.  In State v. Neiswanger Management Services, LLC, et al., a civil case filed in the Circuit Court for Montgomery County in December 2016, the State alleged that NMS had engaged in unfair, unsafe, and unlawful discharge practices affecting hundreds of residents and had submitted false claims to the State’s Medicaid program.  Under the settlement, Neiswanger and NMS, which discontinued its operation of nursing facilities in Maryland in February 2018, are permanently precluded from engaging directly or indirectly in the management or operation of nursing facilities in Maryland, and from participating as providers in the Maryland Medicaid program; will pay $2.2 million to the State; and, will drop a federal lawsuit that NMS filed against employees of the Maryland Department of Health in March 2017.