2 Wayne Nursing Facilities Set To Lose NJ Medicaid Funds: Comptroller

WAYNE, NJ — Two long-term care facilities in Wayne will be suspended from the state Medicaid program if their current ownership does not change, the state comptroller said.

Avalon Rehab and Care Center in Wayne and Atrium Post Acute Care of Wayne are part of a network of facilities owned by KBWB Operations, which did business as Atrium Health and Senior Living and was based in Little Falls.

The former CEO of the company, Kevin Breslin, and five other company owners pleaded guilty to federal health care fraud and tax conspiracy in Wisconsin back on Jan. 24. According to the indictment, Atrium used Medicare and Medicaid funds to make “guaranteed” payments to its owners while vendors went unpaid, and the facilities were not properly supplied.

Now, New Jersey Comptroller Kevin Walsh is calling on the owners of the Wayne facilities and two other Atrium locations in Park Ridge to completely disassociate from the facilities, or they will lose state Medicaid funding effective May 7.

Other than Breslin, the other owners who received suspension notices are William G. Burris, Jr., William G. Burris III, Mary Theresa Khawly, Elia Zois, and Vincent Tufariello.

This could mean placing the facilities under the control of another independent party, so long as those owners do not have access to, or authority over, its Medicaid funds.

"Again and again, we are seeing owners and operators of Medicaid-funded nursing homes in New Jersey engaging in massive fraud," Walsh said. "That’s causing real harm to the vulnerable residents who rely on Medicaid."

The comptroller's office also moved to disqualify the owners from the Medicaid program; they may challenge their suspensions and disqualifications. Walsh said his office has kept state agencies informed so they can step in to protect the residents if need be.

KBWB-Atrium owned about a dozen facilities in New Jersey at one point, Walsh said, and also owned and operated nursing facilities in Michigan.

In December, Walsh also moved to suspend South Jersey Extended Care and its related business from Medicaid funding, saying the owners ran a "massive scam" for years.

Avalon Rehab and Care Center did not immediately return Patch's request for comment.