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ew York Attorney General Letitia James has reached a settlement with Daryl Hagler and Kenneth Rozenberg, co-owners of Centers Health Care. The agreement requires the operators to pay $45 million, with most funds allocated towards improving care and staffing at several state nursing homes. As part of the deal, Centers must increase staffing, implement reforms recommended by an independent monitor, and have a separate monitor oversee their finances.

    The settlement follows James' lawsuit last year, which alleged that Hagler and Rozenberg misused over $83 million in Medicaid and Medicare funds to enrich themselves while residents faced subpar conditions. The state claimed the owners saddled nursing homes with debt and inflated rents to benefit Hagler's companies. The affected facilities are located in Queens, the Bronx, White Plains, and Buffalo.

    As part of the agreement, James' office will not pursue further action against Centers. However, the company must invest significantly in resident care and adhere to the settlement terms. Hagler is a real estate investor with notable deals in New York City's outer boroughs.