The quickly growing Skyline Healthcare, owned by Joseph Schwartz, had more than 100 facilities across the country at its peak, but quickly fell apart when it struggled to come up with funding in 2018 and 2019, according to NBC News.
The new lawsuit alleges that certain Skyline nursing homes in Arkansas, Kansas, Nebraska, and South Dakota promised employees health, dental and Aflac insurance plans, with premiums directly deducted from paychecks. However, while money was taken out of employee paychecks, no insurance was ever purchased, according to the complaint.
Former employees allege that Skyline submitted false tax forms to the IRS to prove its compliance with the Affordable Care Act. The lawsuit also claims Skyline set up a fake company, Cornerstone Quality Care, to enroll employees in various insurance plans, deduct the premiums and then pocket the money. The lawsuit accuses Skyline of violating the Racketeer Influenced and Corrupt Organizations Act.
Some states have passed new laws that mandate better screening of potential nursing home buyers.
More articles on post-acute care:
Nursing home patient satisfaction scores? CMS says it could happen
Aperion Care nursing homes fined $366K+ for violations in 2019
California nursing home fined $13K+ for firing nurse after maternity leave
At the Becker's 11th Annual IT + Revenue Cycle Conference: The Future of AI & Digital Health, taking place September 14–17 in Chicago, healthcare executives and digital leaders from across the country will come together to explore how AI, interoperability, cybersecurity, and revenue cycle innovation are transforming care delivery, strengthening financial performance, and driving the next era of digital health. Apply for complimentary registration now.