Staffing Agency Sues Williamsville Nursing Home for $1.3M as Families Raise New Concerns

Williamsville, NY — A local nursing home already under scrutiny from families and staff is now facing a $1.3 million lawsuit over unpaid staffing bills.

According to a complaint filed in Erie County Supreme Court, healthcare staffing firm ShiftMed alleges that Comprehensive Rehab and Nursing Center at Williamsville failed to pay more than $1.3 million for services provided between October 2023 and July 2024.

The lawsuit claims the facility did not formally dispute the invoices, as required under the terms of its contract, and that the balance remains outstanding.

ShiftMed’s attorneys further allege that during that period, the nursing home billed government programs and third-party insurers for care delivered in part by the agency’s employees.

Comprehensive Rehab has not responded to multiple requests for comment regarding the allegations. The case is pending in Erie County Supreme Court.

Families Voice Ongoing Concerns

The legal dispute comes days after family members publicly raised concerns about the building’s condition. They described roof leaks, buckets placed along hallways and in resident rooms, and unusually cold indoor temperatures during repair work.

David Marshall, whose mother lives at the facility, said the lawsuit deepens his worries.

“I don’t think I’m just speaking for my mother — I’m speaking for everyone else that can’t have a voice,” Marshall said, adding that he feels compelled to push for changes on behalf of residents.

He described his advocacy as a way of giving back to his mother, saying she would have done the same for others.

Industry Pressures Mount

Industry leaders say financial strain is widespread across New York’s nursing home sector. Stephen Hanse, president of the New York State Health Facilities Association, has warned that rising labor costs and ongoing Medicaid reimbursement challenges have created what he calls a “perfect storm” for providers statewide.

It remains unclear whether the lawsuit is directly tied to broader financial pressures.

In a statement, the New York State Department of Health said it cannot comment on matters that are or may be under investigation but reviews complaints and takes action when necessary to ensure resident safety and regulatory compliance.