Attorney General Bonta Announces Settlement with Mariner Health for Misrepresenting Quality of Care, Putting Residents at Risk

Settlement includes injunctive relief with independent monitoring, payment of $2.25 million in costs and up to $15.5 million in civil penalties for violations of the injunction

OAKLAND – California Attorney General Rob Bonta today announced a settlement with Mariner Health Care, Inc. (Mariner) who operated 19 skilled nursing facilities in California. The settlement, which is linked to the Bankruptcy Reorganization Plan of two Mariner entities in Chapter 11, will provide injunctive relief for a minimum of five years, monitoring by an independent monitor for a minimum of three years, payment of $2.25 million in costs, and penalties of up to $15.5 million dollars for any violations of the injunction or law. 

“Skilled nursing facilities should always provide their residents with the highest standard of care,” said Attorney General Rob Bonta. “Instead, Mariner jeopardized residents’ health and well-being, and misled prospective residents and their families about the quality of its California facilities. Today’s settlement will hold Mariner accountable and ensure that residents at their facilities are given the proper care they need in a safe environment with proper staffing requirements. My office remains committed to protecting the elderly and disabled and will never tolerate the mistreatment and abuse of our state's most vulnerable residents.”  

“I am pleased with the $15.5 million settlement to hold Mariner Health Care Inc., accountable for its horrific practices and mistreatment of patients in their various skilled nursing facilities locations in California, including facilities in Los Angeles County,” said Los Angeles County District Attorney George Gascón. “Let this be a reminder to the health care industry that we expect the highest level of care for all, especially our most vulnerable community members who rely on you to help and protect them. I applaud the prosecutors from my office’s Consumer Protection Division and our partners who worked diligently and left no stone unturned to ensure those affected by Mariner HealthCare Inc., were represented and received justice.”

“This is a significant win for the people of the State of California against Mariner Health Care Inc.,” said Alameda County District Attorney Pamela Price. “While seeking justice for the victims and their families in this case, prosecutors in our Consumer Justice Bureau joined in this effort with the California Attorney General’s office and our DA colleagues across the state in hopes of sending a signal to owners of skilled nursing facilities – treat your patients with compassion, dignity, and respect or you will be held accountable.”

“The care and safety of the elderly and nursing home residents has always been a priority in our office and the offices of our law enforcement partners, including the Attorney General,” said Santa Cruz County District Attorney Jeff Rosell. “The resolution of this lengthy litigation will hold Mariner accountable and ensure adherence to laws and regulations designed to protect their residents. This will serve as a deterrent to others who neglect the care and safety of nursing home residents."  

“Skilled nursing facilities provide a vital service to our community members who need specialized health care outside of hospitals while recovering from illness, injury or surgery,” said Marin County District Attorney Lori E. Frugoli.  “This settlement will ensure that Mariner Health Care is providing the appropriate level of nursing care and staffing that their clients and their families deserve, expect and are entitled to under the law.”

The settlement resolves allegations filed by the Attorney General and the District Attorneys of Alameda, Los Angeles, Marin, and Santa Cruz counties, alleging that Mariner violated California’s Unfair Competition Law and False Advertising Law by understaffing its facilities and subjecting its patients to negligent care while inflating their skilled nursing facilities advertised ratings to the Center for Medicare and Medicaid Services.

As part of the settlement, Mariner will be required to: 

• Reform and improve its practices and the services for residents in their California skilled nursing facilities.
•  Implement an independent monitor for no less than 3 years.
• Pay $2.25 million in costs and up to $15.5 million in civil penalties.

The California Department of Justice’s Division of Medi-Cal Fraud and Elder Abuse protects Californians by investigating and prosecuting those who defraud the Medi-Cal program as well as those who commit elder abuse. These settlements are made possible only through the coordination and collaboration of governmental agencies, as well as the critical help from whistleblowers who report incidences of abuse or Medi-Cal fraud at oag.ca.gov/dmfea/reporting.

DMFEA receives 75% of its funding from HHS-OIG under a grant award totaling $87,038,485 for federal fiscal year 2024. The remaining 25% is funded by the State of California. The federal fiscal year is defined as October 1, 2023 through September 30, 2024. 

A copy of the stipulated judgment is available here.