Failure to Adhere to Professional Standards in Financial Obligations to Staffing Agency
Penalty
Summary
Facility administration failed to operate and provide services in accordance with accepted professional standards and principles, specifically regarding financial obligations to a contracted staffing agency. The facility entered into a staffing agreement with the agency to provide temporary healthcare personnel, including CNAs, LPNs, and RNs, at agreed-upon hourly rates. The contract stipulated that invoices for staffing services were to be paid upon receipt and not to exceed 45 days, with finance charges applied to overdue balances. A review of facility documents and interviews with the regional vice president of operations revealed that the facility accumulated a significant outstanding balance for services rendered by the staffing agency from May through September. Despite receiving invoices and repeated demands for payment, the facility failed to remit payment for these services, resulting in a past due balance exceeding $911,000, which with interest totaled over $1.1 million. The staffing agency subsequently filed a lawsuit against the facility for non-payment, and the facility was served with a Complaint for Damages. During the survey, the facility was unable to provide a policy for accounts payable when requested by the surveyor. The issue was discussed with facility leadership, including the administrator, DON, and regional consultants, but no further information or documentation was provided to the survey team prior to the survey exit.