AARP New Jersey Responds to Comptroller Report Revealing Fraud, Abuse, and Systemic Neglect in Nursing Homes

Findings underscore urgent need for financial transparency and swift passage of S1948/A1872

TRENTON, NJ – AARP New Jersey State Director Chris Widelo issued the following statement in response to the report released today by the New Jersey Office of the State Comptroller on nursing homes:

“The Comptroller’s report exposes a level of dysfunction and lawlessness in New Jersey’s nursing homes that is nothing short of shocking. This is not mismanagement – it is a systemic, dangerous breakdown in oversight and accountability that is putting residents’ lives at risk while operators enrich themselves at taxpayer expense.

“The report details horrific incidents – including the death of a resident, two sexual assaults, and thousands of 911 calls from inside facilities that are supposed to be providing care. These are the most vulnerable people in our state, and they are being failed at every turn.

“At the same time, the Comptroller uncovered egregious financial abuses. In some cases, owners took out mortgages on nursing homes, then transferred those mortgages to related-party real estate companies they also control — allowing them to charge the facility inflated rent and divert millions of dollars away from resident care. This practice has long been suspected, but this is the first time it has been publicly documented. And given how widespread excessive ‘rent’ payments are across the industry, this is almost certainly not an isolated scheme, but a pervasive business model.

“New Jersey spends more than $2 billion a year on nursing homes, yet too many of these facilities continue to understaff, underperform, and endanger residents — all while moving public dollars into private pockets through opaque, interconnected companies. Since FY2022, nursing homes have received more than $250 million in additional state funding with no added transparency requirements. Taxpayers are being forced to subsidize poor care, dangerous conditions, and hidden profits.

“The Legislature must act. AARP New Jersey is calling for the immediate passage of S1948/A1872, which would require full financial transparency, including disclosure of all owners and related-party companies, through audited, consolidated financial statements. Without the ability to follow the money, New Jersey cannot protect residents or hold operators accountable.

“Today’s report makes one thing painfully clear: nursing home residents are living in unsafe conditions, operators are exploiting financial loopholes for profit, and taxpayers are footing the bill. This must end. Lawmakers must pass S1948/A1872 now.”

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About AARP
AARP is the nation's largest nonprofit, nonpartisan organization dedicated to empowering people 50 and older to choose how they live as they age. With a nationwide presence, AARP strengthens communities and advocates for what matters most to the more than 100 million Americans 50-plus and their families: health security, financial stability and personal fulfillment. AARP also produces the nation's largest circulation publications: AARP The Magazine and AARP Bulletin. To learn more, visit www.aarp.org/about-aarp/, www.aarp.org/español or follow @AARP, @AARPenEspañol and @AARPadvocates on social media.