original article by Kimberly Marselas of McKnight’s Long Term Care News
Two prominent staffing agencies are set to pay a combined total of over $700,000 to settle allegations that they overcharged nursing homes in Massachusetts, one of the few states with established rate caps for such services.
Massachusetts Attorney General Andrea Joy Campbell revealed the settlement on Tuesday, marking the state’s third major intervention targeting non-compliant billing practices since the maximum nursing rates were established by the Executive Office of Health and Human Services. This move is especially notable given the increased demand for temporary staffing during the pandemic.
A 2024 study published in Health Affairs highlights that the reliance on agency staff in nursing homes surged from under 20% in 2018 to nearly 50% by 2022. Many facilities turned to these temporary workers more frequently, fueling concerns about escalating costs. While some states attempted to curb price gouging, most avoided imposing strict price controls.
Before the pandemic, only Massachusetts and Minnesota had rate caps in place. Oregon has introduced a cap system effective January 1, 2025, although new rules and rates are still pending.
Rate Abuse Allegations
The recent settlements involve Massachusetts-based staffing firms IntelyCare Inc. and connectRN. Specific details regarding the timing of the violations and the number of affected facilities were not disclosed. IntelyCare will pay over $500,000, including approximately $236,000 in restitution and $270,000 in penalties. connectRN will contribute over $100,000, including $43,000 in restitution and $65,000 in penalties to the Long-Term Care Facility Quality Improvement Fund.
The Attorney General’s office noted that these penalties will benefit the Commonwealth’s Long-Term Care Facility Quality Improvement Fund, designed to enhance care quality in long-term facilities.
In response to the allegations, IntelyCare stated that the overcharges occurred between October 2021 and February 2023, affecting less than 2% of their shifts during this period. The company attributed over 90% of these charges to rate increases implemented by facilities to address urgent staffing needs during the pandemic’s peak in 2021. IntelyCare emphasized their full cooperation with the investigation, the implementation of new compliance measures, and their commitment to reimbursing affected clients.
Both IntelyCare and connectRN have agreed to update their software and practices to align with EOHHS regulations. As the demand for their services has waned since the pandemic, connectRN did not provide a comment when approached by McKnight’s Long-Term Care News.
This settlement follows a January agreement with three out-of-state agencies accused of exploiting skilled nursing and assisted living operators, leading to a settlement of over $260,000. Last year, Attorney General Campbell warned of stringent actions against agencies engaging in unscrupulous billing practices.
“Affordability remains a significant challenge for Massachusetts residents seeking long-term care, which is why adherence to state regulations by temporary nursing staffing agencies is crucial,” Campbell remarked. “This advisory serves as a reminder of our commitment to protecting long-term care facilities from overcharging and misleading practices.”