A Wisconsin indictment charged Kevin Breslin, CEO of Park Ridge, N.J.-based Atrium Health and Senior Living, with a scheme to defraud Medicare and Medicaid.
Between January 2015 and September 2018, Atrium, which operates 24 nursing facilities and nine assisted living facilities in Wisconsin and Michigan, billed Medicare for over $189 million and received over $49 million, and billed Medicaid over $218 million and received over $93 million, according to a Feb. 2 Justice Department release.
Mr. Breslin and Atrium allegedly diverted funds from the Wisconsin facilities through guaranteed payments to Atrium owners and investors who were financing the construction of skilled nursing facilities in New Jersey, according to the release.
Mr. Breslin faces charges of healthcare fraud, six counts of wire fraud, three counts of mail fraud, conspiracy to commit tax fraud and conspiracy to commit money laundering. The alleged charges include:
- Diverting funds, which caused inadequate care of residents including lack of supplies and neglecting necessary repairs and building maintenance.
- Nonpayment to vendors, which caused services such as fire alarm monitoring, physical therapy, and phone and internet to be cut off.
- Withheld insurance premiums from employees' paychecks and failed to pay those monies to the third-party administrator for use in health claims.
- Withheld 401(k) retirement savings account contributions from employees' paychecks and failed to pay those monies to the third-party pension administrator.
- Evaded payment to the Wisconsin Department of Revenue and the IRS of state and federal income taxes and employment taxes withheld from paychecks.
If convicted, Mr. Breslin and Atrium could face five years in federal prison on the conspiracy to commit tax fraud charge and 20 years on each healthcare, wire and mail fraud, and conspiracy to commit money laundering charge. Several of the charges also carry a fine from $250,000 to $500,000.
Editor's note: Becker's was unable to reach the facility for comment. Atrium Health and Senior Living is not a part of the Charlotte, N.C.-based Atrium Health system.