TapestryHealth Files For Chapter 11 Bankruptcy Amid Medicare Review

TapestryHealth filed for Chapter 11 bankruptcy protection on November 6.

The filing covers the healthcare organization and its affiliated entities in federal court.

Stratford Mayor David Chess founded the company nine years ago.

He still serves as chairman of its board of directors.

The bankruptcy follows a federal investigation into accusations of Medicare fraud.

The Centers for Medicare and Medicaid Services suspended certain payments to the company.

CMS is conducting an ongoing review of the company's billing practices.

Chess issued a statement on Monday night to address the developments.

He noted that the payment suspension is not a finding of fraud.

TapestryHealth stated it has cooperated fully with the review.

The company stands behind the care it provided and the claims it submitted.

TapestryHealth has challenged the payment suspension in court to restore those funds. Chess stepped down from management, operations, and clinical responsibilities four years ago. He remained on the board to guide the organization. The company was founded to improve medical care for nursing home residents. Its goal was to help clinicians recognize changes in patient conditions early. This allowed for intervention before problems became more serious. The organization continues to operate and serve its facility partners and residents. The Chapter 11 process is intended to preserve the business. It aims to support employees and those who depend on the company's services as it works toward a resolution. Chess said he recognizes his responsibilities to the people of Stratford. He stated his commitment to serving the community remains unchanged. He pledged to give his duties as mayor the full attention and dedication they deserve. The company was established to provide clinical tools for monitoring nursing home patients. The filing comes as the company seeks to resolve the billing review with federal regulators.