The Office of the State Comptroller (OSC) has announced the suspension of four skilled nursing facilities in New Jersey from participating in Medicaid, effective May 7, 2025. This decision follows a guilty plea by KBWB Operations, also known as Atrium Health and Senior Living, and its former CEO Kevin Breslin to federal healthcare fraud and tax conspiracy charges.
A letter dated February 6 notified KBWB Operations and its owners that they would be barred from providing services to Medicaid beneficiaries and receiving Medicaid funds. The facilities affected are Avalon Rehab and Care Center in Wayne, Atrium Post Acute Care of Wayne, Atrium Senior Living of Park Ridge, and Atrium Post Acute Care of Park Ridge. The suspension applies as long as KBWB-Atrium and Kevin Breslin retain ownership.
Other owners facing suspension include William G. Burris Jr., William G. Burris III, Mary Theresa Khawly, Elia Zois, and Vincent Tufariello. OSC's action is part of an ongoing effort to address fraud within Medicaid-funded nursing homes in New Jersey. Over the past year, similar actions have been taken against seven other nursing homes in the state.
Acting State Comptroller Kevin Walsh highlighted the systemic issues plaguing Medicaid-funded nursing homes: "Again and again, we are seeing owners and operators of Medicaid-funded nursing homes in New Jersey engaging in massive fraud. That’s causing real harm to the vulnerable residents who rely on Medicaid. The fraud is also wasting taxpayer dollars."
In December 2024, OSC released a report detailing misconduct at South Jersey Extended Care (SJEC), where millions were improperly diverted away from resident care into personal businesses and charities.
The upcoming sentencing for Breslin and KBWB-Atrium is scheduled for May. Owners have the right to challenge their suspension from Medicaid.
KBWB-Atrium managed numerous facilities across New Jersey, Wisconsin, and Michigan. An indictment revealed that Medicare and Medicaid funds were used for guaranteed payments to owners rather than addressing financial needs at Wisconsin facilities.
