BRIDGETON, NJ — A Cumberland County nursing facility will lose all Medicaid funding on March 13, 2026, following a state investigation that found owners improperly diverted millions of dollars intended for resident care into personal businesses and charitable organizations while patients lived in severely understaffed and substandard conditions.
The New Jersey Office of the State Comptroller issued final notice this month to South Jersey Extended Care and its owner Mordechay Weisz that both will be permanently suspended from the state's Medicaid program, according to an announcement from Acting State Comptroller Kevin Walsh. The decision follows a comprehensive investigation revealing systematic fraud and neglect at the Bridgeton facility.
"Medicaid funds must be used to care for residents, not to enrich owners and their families and associates," Walsh stated in the announcement. "OSC takes these enforcement actions to ensure accountability and protect the integrity of the Medicaid program."
The comptroller's office investigation, released in December 2024, documented how facility operators funneled Medicaid reimbursements into businesses and charities controlled by ownership while residents endured what investigators characterized as dismal, under-resourced conditions. The facility had earned New Jersey's lowest quality rating at the time of the investigation.
In November 2025, state officials rejected an application from a proposed new ownership group seeking to acquire the facility and participate in the Medicaid program. According to the comptroller's 15-page denial letter, the application presented "an unacceptably high risk of fraud, waste, and abuse" based on multiple concerning factors.
Investigators identified undisclosed financial connections between the proposed buyers and previous operators, along with what the comptroller described as "layers of trusts and LLCs" that appeared designed to obscure true ownership and control structures. The proposed ownership group, identified as Bridgeton SNF, LLC, also maintained a problematic performance record at other nursing facilities, according to state findings.
The facility has operated under court-appointed receivership since 2025, with an independent receiver overseeing daily operations and finances on behalf of the state. However, the comptroller's office determined in its January 7, 2026 correspondence that continuing the current arrangement indefinitely was not viable.
"Continuing the status quo indefinitely is not tenable," the comptroller wrote to the receiver, as reported by the state. Despite the comptroller's November 2025 decision to deny Shlomo Fogel entry into the Medicaid program, he has continued operating the facility. Fogel, a licensed nursing home administrator and former employee of a Konig/Krausman-owned nursing home business, has run South Jersey Extended Care under an agreement with seller Weisz since 2023.
Broader Enforcement Actions
The South Jersey Extended Care suspension announcement came alongside related enforcement actions targeting two other nursing facilities in the region. The comptroller's office filed a lawsuit in Mercer County Superior Court against the owners of Hammonton Center for Rehabilitation and Healthcare and Deptford Center for Rehabilitation and Healthcare, seeking to recover $124 million in allegedly misspent and concealed Medicaid funds.
According to a December 2025 investigative report from the comptroller's office, owners Daryl Hagler and Kenneth Rozenberg improperly diverted resources from resident care through complex real estate transactions, excessive loans, inflated rental payments, and undisclosed fees paid to nine related business entities controlled by the owners or their family members.
The investigation documented widespread neglect and dangerous conditions at those facilities, including sexual assaults of two residents, one resident death, and thousands of emergency 911 calls, according to state findings. The January 2026 lawsuit names 33 defendants, including Hagler, Rozenberg, their family members, business associates, and related corporate entities. The complaint seeks restitution of Medicaid overpayments, civil penalties for false claims and staffing violations, and additional damages.
Hagler and Rozenberg operate nursing facilities across multiple states, with connections to homes in New Jersey, New York, Kansas, and Missouri, according to the comptroller's investigation. Their largest operation is in New York, where they are involved with at least 31 facilities.
Implications for Residents and Families
The March 13 Medicaid suspension deadline raises urgent questions about the future of South Jersey Extended Care and its residents. Federal regulations require nursing facilities to provide adequate notice and assistance to residents and families when closures or major changes occur. The court-appointed receiver continues overseeing operations during the transition period.
State officials have not announced specific plans for resident relocation or facility closure following the Medicaid suspension. Medicaid reimbursements typically constitute the primary revenue source for most nursing facilities, making continued operation financially unfeasible without those payments.
Resources for Families
Families with loved ones at South Jersey Extended Care or anyone concerned about nursing home care quality can contact the New Jersey Long-Term Care Ombudsman program for assistance and advocacy. The National Long-Term Care Ombudsman Resource Center operates a hotline at 1-800-677-1116.
Residents and family members can also file complaints about nursing home conditions through the state health department or access facility inspection reports and quality ratings through Medicare's Nursing Home Compare website. Federal law protects residents' rights to voice concerns about care quality without fear of retaliation.
The ombudsman program provides free, confidential assistance to long-term care residents and families navigating concerns about quality of care, residents' rights, and facility conditions. Additional resources are available at ltcombudsman.org.
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