OAKLAND, MD — Maryland Attorney General Anthony G. Brown has announced a $250,000 settlement with the owners of Dennett Rehab Center, a 99-bed nursing home in Oakland, resolving allegations that the facility provided substandard care to hundreds of Medicaid-funded residents in violation of the Maryland False Health Claims Act, according to a statement from the Office of the Attorney General dated March 19, 2026.
The settlement, which involves both the current ownership entity Dennett Rehab and previous operators DRM Healthcare, includes a three-year corporate oversight agreement that grants the state authority to conduct independent audits and gain unrestricted access to corporate records, medical files, and staffing documentation, as reported by Forever Cumberland.
How the Investigation Unfolded
The facility first drew scrutiny from the Attorney General's Medicaid Fraud and Vulnerable Victims Unit in 2024 following the deaths of two residents, according to reporting by Deep Creek Times. The ensuing investigation uncovered systemic staffing shortfalls that placed residents at significant risk: registered nurse staffing requirements were not met on 17 percent of shifts reviewed, while bedside care staff-to-resident ratios fell below mandated levels on 25 percent of shifts, as detailed in the AG's findings.
Beyond staffing failures, investigators identified eleven patients who sustained serious injuries resulting from falls and other preventable incidents during the period under review, according to the Attorney General's office. The breadth of the allegations — affecting hundreds of residents receiving Medicaid-funded care — pointed to institutional failures rather than isolated lapses.
The case represents the fifth nursing home enforcement action resolved by the Medicaid Fraud and Vulnerable Victims Unit over the past two years, according to Forever Cumberland. The unit has been conducting a broader review of approximately 230 nursing homes across Maryland as part of an ongoing effort to hold long-term care facilities accountable for the quality of care provided to publicly funded residents.
Key personnel involved in the investigation included MFVVU Director Zak Shirley, Assistant Attorney General Raja Mishra, and investigators Dennis Gunther and Prashani Mankhusu, as identified in the AG's announcement.
CMS Inspection History
Federal inspection data paints a troubling picture of Dennett Rehab Center that predates and corroborates the Attorney General's findings. The facility currently holds an overall rating of just 1 out of 5 stars from the Centers for Medicare & Medicaid Services — the lowest possible score. Its health inspection rating stands at 2 out of 5 stars, its staffing rating at 2 out of 5, and its quality measures rating at 1 out of 5.
CMS records show a total of 59 deficiencies documented across 8 inspections. The most recent federal inspection, conducted on October 10, 2025, cited the facility for failing to provide appropriate treatment and care consistent with physician orders and resident preferences — a deficiency classified at severity level G, indicating actual harm to residents.
An earlier inspection on March 5, 2025 resulted in multiple citations, including a failure to protect residents from abuse — encompassing physical, mental, and sexual abuse as well as neglect — rated at severity level E, indicating a pattern of noncompliance. That same inspection also documented deficiencies related to misappropriation of resident property and failures in infection prevention and control protocols.
In February 2024, inspectors cited the facility for failing to promptly notify residents, their physicians, and family members of significant changes in condition, injuries, or declines — the type of communication breakdown that can delay critical medical intervention.
Federal regulations require nursing homes receiving Medicare and Medicaid funding to maintain adequate staffing levels and meet established standards of care. The persistent pattern of deficiencies at Dennett Rehab Center, combined with the state's enforcement findings, suggests a facility that has struggled to meet these baseline requirements over an extended period.
Ownership & Operations
Dennett Rehab Center operates as a for-profit limited liability company, according to CMS records. The involvement of both current and former ownership entities in the settlement — Dennett Rehab and DRM Healthcare — indicates that the alleged care failures spanned a period that included a change in facility ownership or management structure.
The three-year oversight agreement places meaningful constraints on the facility's operations going forward. Under the terms described by the Attorney General's office, state monitors will have the ability to review virtually any aspect of the facility's operations without restriction, a level of scrutiny that goes well beyond routine regulatory inspections.
Resources for Families
Families with loved ones in Maryland nursing homes who have concerns about the quality of care should contact the Maryland Long-Term Care Ombudsman program at 1-800-243-3425. Ombudsman advocates work on behalf of residents to resolve complaints and can assist families in navigating the regulatory process.
The national elder care hotline, operated by the Administration on Aging, can be reached at 1-800-677-1116 and provides referrals to local services and support for families dealing with long-term care concerns.
Additional resources, including information on how to file complaints and understand nursing home inspection reports, are available through the National Long-Term Care Ombudsman Resource Center at ltcombudsman.org.
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