Company Founded By Stratford Mayor Files For Bankruptcy

STRATFORD, CT — TapestryHealth, a healthcare organization founded by Stratford Mayor David Chess, and its affiliates have filed for bankruptcy protection.

The Connecticut Post reported the bankruptcy filing comes amid a federal investigation into accusations of Medicare fraud.

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Chess issued the following statement on Monday night to "address recent developments regarding TapestryHealth, the healthcare organization I founded nine years ago."

"On November 6, TapestryHealth and its affiliated entities voluntarily filed for Chapter 11 bankruptcy protection in federal court. 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.

"Although I stepped down from my management, operations, and clinical responsibilities at TapestryHealth four years ago, I continue to serve as chairman of its board of directors.

"TapestryHealth was founded to improve medical care for nursing home residents, helping clinicians recognize changes in patients' conditions and intervene before problems become more serious. I remain proud of that mission and the dedicated professionals who have worked to fulfill it.

"The bankruptcy filing follows the suspension of certain Medicare payments by the Centers for Medicare & Medicaid Services (CMS) during an ongoing review of the company's billing. A payment suspension is not a finding of fraud. TapestryHealth has stated that it has cooperated fully with the review and stands behind the care it provided and the claims it submitted. The company has also challenged the suspension in court, seeking restoration of those payments. Nevertheless, these are serious matters that deserve a fair and thorough review.

"TapestryHealth continues to operate and serve its facility partners and nursing home residents. 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.

"I also recognize my responsibilities to the people of Stratford. My commitment to serving our community remains unchanged, and I will continue to give my duties as mayor the full attention and dedication they deserve."