Attorney General Andrea Joy Campbell announced settlements with three temporary nurse staffing agencies to resolve allegations that they failed to comply with regulations and charged for temporary nurse staffing at long-term care facilities at rates above the maximum rates allowed by the Executive Office of Health and Human Services (EOHHS).
One of the settlements is with Nebraska-based Lawrence Recruiting Specialists, Inc., which will pay $200,000, including refunds of $75,000, to affected long-term care facilities and a civil penalty of approximately $125,000, to resolve allegations that they failed to comply with and/or violated EOHHS’s regulations by charging for temporary nurse staffing services at rates above those allowed by EOHHS. The Attorney General contends such practices are unfair or deceptive in violation of the Massachusetts Consumer Protection Act, G.L. c. 93A.
A second settlement is with Maryland-based Maxim Healthcare Staffing Services, Inc., which will pay approximately $1,500 back to affected long-term care facilities and $55,000 in penalties to resolve similar allegations. The third settlement, also resolving similar allegations, is with Belmont-based Nursing on Demand, LLC, which has agreed to pay $7,388.69, including full restitution to the long-term care facilities affected by the conduct as well as penalties.
“Affordability continues to be a major challenge for Massachusetts residents and their loved ones seeking long-term care, and my office will continue to hold accountable those who seek to take advantage in an already fragile and high-cost system,” said AG Campbell.
Under the terms of the settlements, all three agencies have agreed to measures that will ensure their future compliance with rate regulations. Nursing on Demand will also maintain a corporate compliance program, which includes compliance training for employees, a code of conduct that will ensure compliance with EOHHS rate regulations, and periodic auditing, testing, and monitoring.
This settlement is part of AG Campbell’s broader effort to ensure compliance with EOHHS rate requirements for temporary nurse staffing agencies. In March 2023, AG Campbell issued an advisory in response to allegations received by the AG’s Office that some temporary nurse staffing agencies have been attempting to overcharge, demand additional fees, or enter misleading arrangements with long-term care facilities.
The AG has authority to investigate and prosecute noncompliance with EOHHS regulations governing temporary nurse staffing agencies. Concerns or complaints regarding temporary nurse staffing at Massachusetts long-term care facilities can be made to the Attorney General’s Medicaid Fraud Division at 617-963-2360, or the Massachusetts Department of Public Health (DPH) Division of Health Care Facility Licensure and Certification at 617-753-8150.
These matters were handled by Deputy Chief Kevin Lownds, Assistant Attorney General Kevin O’Keefe, Senior Healthcare Fraud Investigator Shelby Stephens, and Investigator Kathleen Tansey, all of the AG’s Medicaid Fraud Division. DPH provided substantial assistance with these investigations.
The Massachusetts Medicaid Fraud Division receives 75 percent of its funding from the U.S. Department of Health and Human Services under a grant award totaling $5,865,996 for federal fiscal year 2024. The remaining 25 percent, totaling $1,955,330 for FY 2024, is funded by the Commonwealth of Massachusetts.
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