BRONX, NEW YORK — Pinnacle Multicare Nursing and Rehabilitation Center, a 480-bed nursing home in the Bronx co-owned by a Trump administration diplomatic nominee, is suing the federal government to avoid repaying at least $31.2 million in Medicare overpayments identified by a federal inspector general audit, according to reporting by ProPublica and Skilled Nursing News.
What the Audit Found
The Office of the Inspector General within the U.S. Department of Health and Human Services conducted an audit of Pinnacle Multicare's Medicare billing practices during the 2020-2021 period, according to ProPublica. Of 100 claims reviewed, auditors determined that 99 failed to meet Medicare payment requirements. In 95 of those claims, the facility had billed for higher levels of care than what patient records supported — including, according to ProPublica, speech therapy services for residents who did not need them. In 54 claims, auditors found the facility had charged for services that patients' own medical charts indicated were unnecessary, such as wheelchair training for individuals who were capable of walking independently.
The audit was conducted under the Patient-Driven Payment Model, a reimbursement system that took effect in 2019 and ties Medicare payments to the clinical characteristics and care needs documented in each patient's record, according to McKnight's Long-Term Care News.
Pinnacle filed suit on February 26, 2026, in the Southern District of New York, according to ProPublica. The defendants named in the lawsuit include HHS Secretary Robert F. Kennedy Jr., CMS Administrator Mehmet Oz, and HHS Inspector General Thomas March Bell. The facility argues that the audit was fundamentally flawed and that it improperly applied stricter billing standards retroactively — particularly given relaxed regulatory requirements that were in effect during the COVID-19 pandemic. Pinnacle has also claimed that being forced to repay the funds could result in the facility's closure.
A federal judge denied Pinnacle's request for a temporary restraining order to pause the recoupment, according to ProPublica.
An attorney representing the facility's co-owner pushed back on the findings. "At Pinnacle MultiCare, patient care comes first – period, full stop," attorney Alyssa Friedman said in a statement to ProPublica, emphasizing that the billing issues occurred during the height of the pandemic when nursing homes were operating under crisis conditions.
"Let's be clear: this is about decisive actions taken during the height of COVID-19 that prioritized patients and saved lives in one of the pandemic's epicenters – decisions now being second-guessed years later through an absurdly flawed audit of billing paperwork and a retroactive reinterpretation of the rules by government bureaucrats," Friedman added, according to ProPublica.
The Ownership Connection
The facility is linked to Benjamin Landa, whom President Donald Trump nominated in October 2025 to serve as U.S. Ambassador to Hungary, according to ProPublica. Landa reportedly donated $5 million to the MAGA Inc. Super PAC. He holds ownership stakes in more than 100 nursing homes across eight states, according to Newser.
Landa's nomination remains under review by the Senate Foreign Relations Committee, according to Skilled Nursing News. Senator Ron Wyden, a Democrat, has criticized Landa as representative of "giant corporate health care interests that prey on the vulnerable," as reported by Newser.
Landa's business record extends beyond billing disputes. According to ProPublica, the New York Attorney General has accused Landa of improperly diverting $1.49 million from a facility called Villages at Orleans. Another facility linked to his ownership network, Cold Spring Hills Center for Nursing and Rehabilitation, was sold for $10 after filing for bankruptcy in January 2025, according to the same report. In 2019, a federal judge found that Landa had violated human trafficking laws by coercing more than 200 Filipino nurses, according to ProPublica.
The SEIU Healthcare PA union has cited allegations of fraud, human trafficking, and substandard care at multiple Landa-associated facilities, including seven nursing homes in Pennsylvania, according to Newser.
CMS Inspection History
Pinnacle Multicare Nursing and Rehabilitation Center's federal inspection record provides additional context for evaluating the facility's operations. CMS data shows the facility holds a 480-bed capacity, making it one of the larger nursing home operations in New York City. Federal nursing home oversight through CMS's Five-Star Quality Rating System evaluates facilities on health inspections, staffing levels, and quality measures. Facilities involved in significant Medicare billing disputes often face heightened scrutiny from both federal and state regulators going forward.
The scale of the overpayment finding — $31.2 million extrapolated from a sample where 99 percent of reviewed claims were found noncompliant — is notable. Federal regulations require that Medicare claims accurately reflect the services provided and the clinical needs documented in a patient's record. When auditors identify systemic overbilling patterns of this magnitude, it raises questions about whether the facility's internal compliance and documentation systems were adequate during the period in question.
Resources for Families
Family members with concerns about care quality or billing practices at any nursing home facility can contact their state's Long-Term Care Ombudsman program. The ombudsman serves as an independent advocate for nursing home residents and can assist with complaints, concerns, and questions about residents' rights.
- National Long-Term Care Ombudsman Resource Center: 1-800-677-1116 - Online: [ltcombudsman.org](https://ltcombudsman.org)
Families can also file complaints directly with the New York State Department of Health or with the Centers for Medicare & Medicaid Services. Medicare beneficiaries who suspect billing fraud can report concerns to the HHS Office of the Inspector General's fraud hotline at 1-800-HHS-TIPS (1-800-447-8477).