A beleaguered New England nursing home provider said it was working with federal regulators on unpaid employee health insurance claims that are believed to be as high as $6 million.
Athena Health Care Systems is also restructuring staffing by signing contracts with staffing agencies it borrows money from, according to a statement provided by the company. McKnight Nursing News on tuesday.
The company says it has been able to “significantly reduce agency headcount” because it employs its own staff at more than 40 long-term care facilities.
“The patients and families we serve, our valued employees, and communities across Connecticut need confidence that Athena will continue to meet their long-term care needs now and in the future.
The company operates facilities in Connecticut, Massachusetts and Rhode Island. Authorities in all three states are investigating after six staffing agencies filed lawsuits in Connecticut, alleging the companies have more than $142,000 in unpaid wages in total. , is seeking more than $2 million for outstanding debt owed by Athena to Lifeline staffing agency, Connecticut Mirror. report on sunday.
ClaimDOC LLC filed a federal lawsuit against the company, alleging that Athena failed to pay more than $6 million in employee health insurance claims.
Athena’s statement said it “has also made substantial payments on health insurance claims and is now up to date and compliant,” adding that it is working with the U.S. Department of Labor.
Athena was recently accused by the Massachusetts Attorney General’s Office of putting people with substance abuse problems into institutions without the ability to properly care for them, which led to “massive overdoses.” The company, which agreed to pay the state attorney general’s office a $1.75 million fine, is still facing a wrongful death lawsuit from the family of a resident who died after being beaten to death with a walker by his roommate.
