A Bitter Pill for Sweetwater Care: Attorney General Bonta Secures $15 Million Medi-Cal Settlement Against the Skilled Nursing Facility Chain

OAKLAND - California Attorney General Rob Bonta announced securing a $15 million settlement with Sweetwater Care Resource, LLC and affiliates (Sweetwater), a licensed skilled nursing facility (SNF) chain that violated state staffing requirement laws. The settlement includes $12.5 million in penalties and costs and $2.5 million in funds toward improving staffing and securing a compliance monitor. The settlement also includes injunctive terms imposing an Independent Compliance Monitor for all 17 Sweetwater SNFs for the next three years. The case was filed under California's Unfair Competition and False Advertising Laws.

"Our elders deserve care that is safe, dignified, and consistently held to the highest standards. When those entrusted with the care of elderly residents fail to live up to these standards and put Californians in harm's way, we take action," said Attorney General Bonta. "This settlement is a step in the right direction for Sweetwater Care and it underscores the California Department of Justice's commitment to standing against any form of Medi-Cal fraud or elder abuse. We will continue to hold accountable those who put profits over patients."

Skilled nursing facilities cater to some of the state's most frail, elderly, and vulnerable residents. The California Legislature established minimum staffing regulations for SNFs that choose to operate in California. These laws require SNFs to provide a minimum of 3.5 direct care service hours per resident day from nurses and aides, 2.4 hours of which must come from certified nurse assistants.

However, from 2021 to 2024, while Sweetwater accepted tens of millions of dollars to care for Medi-Cal patients in its SNFs, an investigation conducted by the Division of Medi-Cal Fraud and Elder Abuse (DMFEA) revealed systemic understaffing of Sweetwater nursing homes, in violation of California law. Staffing data indicates that in over 14,126 instances, Sweetwater SNFs were staffed below California mandatory minimum staffing levels for nursing homes.

The DMFEA is a California Department of Justice unit whose mission is to protect the public and the state's Medi-Cal program from those who defraud taxpayers and divert state health care resources. The investigation was made possible through the collaboration of government agencies and those who reported incidences of Medi-Cal fraud. If you suspect Medi-Cal fraud or elder abuse, you can report it at https://oag.ca.gov/dmfea/reporting.

The Division of Medi-Cal Fraud and Elder Abuse receives 75 percent of its funding from the U.S. Department of Health and Human Services under a grant award totaling $77,652,892 for Federal Fiscal Year (FFY) 2026. The remaining 25 percent, totaling $25,884,297 for FFY 2026, is funded by the California Attorney General's Office. FFY 2026 is from October 1, 2025 through September 30, 2026.