Price Gouging

Massachusetts Attorney General Andrea Joy Campbell announced a settlement with three temporary staffing agencies for price gouging. The chief complaint was that the accused companies charged nursing homes and assisted living communities rates that were higher than the maximums allowed by the state.

The staffing agencies agreed to pay more than $260,000 to resolve allegations of wrongdoing.  The complaint included mischaracterization of COVID-influenced rates. The agencies involved in the settlement:

• Nebraska-based Lawrence Recruiting Specialists, which will pay $200,000. That amount includes refunds of $75,000 to affected long-term care facilities, as well as a civil penalty of approximately $125,000.
• Maryland-based Maxim Healthcare Staffing Services, which agreed to pay approximately $1,500 back to affected operators, as well as $55,000 in penalties.
• Belmont, MA-based Nursing on Demand, which will pay more than $7,400 for full restitution to the long-term care facilities affected by the conduct, as well as penalties.

The settlement follows the issuance of an advisory by the attorney general’s office in response to allegations the office received that some temporary nurse staffing agencies were attempting to overcharge, demand additional fees or enter into misleading arrangements with senior living communities and nursing homes.

“Affordability continues to be a major challenge for Massachusetts residents and their loved ones seeking long-term care, and my office will continue to hold accountable those who seek to take advantage in an already-fragile and high-cost system,” Campbell said in a statement.