Stratford Mayor's Tapestry Health Files Bankruptcy Amid Medicare Fraud Probe

Stratford Mayor Chess faces an unfolding federal inquiry as his healthcare company, Tapestry Health, files for Chapter 11 bankruptcy protection following a sudden suspension of Medicare payments, according to CTPost.

The bankruptcy filing, effective November 3 and signed by Chess alongside chief restructuring officer David Campbell, arrived the same day federal prosecutors moved to enforce compliance in an ongoing investigation. The U.S. Attorney’s Office for the Southern District of New York is probing whether the company submitted false or fraudulent claims for chronic care management, remote physiological management, and behavioral health integration services.

Stratford Mayor's TapestryHealth Network Files Chapter 11 After CMS Suspends Medicare Payments Over False Claims Allegationshttps://t.co/wAJyiFNXWe

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Founded by Chess in 2017, Tapestry Health and its affiliates employ around 2,000 workers who assist nursing home staff with remote patient monitoring. Chess, a Democrat and geriatrician, noted that he stepped down four years ago from management, operations and clinical responsibilities while retaining his role as chairman of Tapestry’s board of directors.

I understand this news may raise questions about my role at the company and my responsibilities as Stratford’s mayor, and I want to address them directly, Chess said in a statement Monday evening, as reported by CTPost.

Federal investigators first began seeking documents from Tapestry entities last April. According to court filings from the U.S. attorney, the companies initially cooperated before unilaterally suspending document production on August 19.

Chess emphasized that the financial crisis stemmed from Medicare payments being cut off during an ongoing review of the company’s billing. A payment suspension is not a finding of fraud, he stated, adding that the enterprise has challenged the stoppage in court to restore revenue.

Despite the legal pressure, the firm continues providing services to nursing home facility partners. The Chapter 11 process is intended to preserve the business and support its employees, facility partners, and residents who depend on its services as the company works toward a resolution, Chess maintained.

Local political commitments remain unaffected by the corporate restructuring, according to the mayor. My commitment to serving our community remains unchanged, Chess said, and I will continue to give my duties as mayor the full attention and dedication they deserve.