Skilled Nursing Staffing Firm Faces Fraud Investigation, Medicare Freeze

A nursing home staffing firm based in Nashville, Tenn., is facing an ongoing investigation into whether or not it overcharged the federal government — a process that has resulted in frozen Medicare reimbursements and missed checks for employees.

The Tennessean first reported the news.

Wellness Solutions Geriatrics (WSG) uses a network of nurse practitioners to fill positions in nursing homes in Alabama, Florida, Georgia, and Tennessee. The company’s Medicare reimbursements were frozen last year, and WSG stopped paying employees in December 2018.

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At least 100 employees have not been paid in two months, The Tennessean reported. A representative for WSG confirmed this to the publication, though the company did not return a message left by Skilled Nursing News as of press time.

WSG was founded by Steven Scesa, who later sold the company, according to The Tennessean. There were rumors in October 2018 that the company was in financial trouble, former employees told the publication, and a company-wide e-mail on December 19 said WSG could afford to pay just 20% of its payroll. WSG stopped daily operations at the end of January, according to the Tennessean.

The company was apparently acquired by CHE Behavioral, The Tennessean reported, in a deal where it did not assume responsibility for back pay.

CHE appears to have two locations: one in Brooklyn, N.Y., and one in Carlsbad, Calif., according to a website for CHE Behavioral Health Services. The company employs more than “700 doctoral-level psychologists, psychiatrists, nurse practitioners and related mental health professionals,” to provide services in long-term care settings, according to the site.

CHE had not returned messages left by SNN as of press time.

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