American Health Foundation — $3.61M False Claims Act Settlement for Substandard Care

American Health Foundation (AHF), its affiliate AHF Management Corporation, and three affiliated nursing homes — Cheltenham Nursing & Rehabilitation Center (Philadelphia, PA), The Sanctuary at Wilmington Place (Dayton, OH), and Samaritan Care Center and Villa (Medina, OH) — agreed to pay $3.61 million to resolve False Claims Act liability. The U.S. Department of Justice alleged the facilities billed Medicare and Medicaid for grossly substandard skilled nursing services between 2016 and 2018. Allegations included failure to follow infection control protocols, inadequate staffing, pest-infested conditions at Cheltenham, unnecessary medications (antibiotics, antipsychotics, antianxiety, and hypnotic drugs), verbal abuse of residents, and failure to provide needed psychiatric care. As part of the settlement, AHF entities entered into a chain-wide, five-year Corporate Integrity Agreement with the HHS Office of Inspector General addressing quality of care and resident safety. Following the settlement, Cheltenham Nursing & Rehabilitation Center changed ownership. Pennsylvania Department of Health approved a change of ownership on May 29, 2025, transferring the facility from AHF-Montgomery Inc. to 600 W Cheltenham Opco LLC, an entity associated with operator Ahron Lieberman.