The American Senior Communities, a company that operates nursing homes, has just fired James Burkhart, the company's CEO, according to a report from The Indy Channel.
The firing comes days after the FBI raided Burkhart's home and the company's office.
The Indy Channel posted the statement that the American Senior Communities said on Friday regarding the issue with their CEO.
American Senior Communities said in the statement that they terminated Burkhart after conducting an internal review.
"As the result of ASC's internal review, this investigation does not touch upon the operation of any nursing home serviced by ASC," the company said in the statement. "However, ASC has terminated the employment of its CEO, James G. Burkhart, effective immediately."
The Kansas City Star adds that several FBI and IRS agents have spent hours searching Burkhart's home and American Senior Communities' office last Tuesday.
Burkhart, in a statement, referred to the search as a "cost review."
Wendy Osborne, a spokeswoman of the FBI, told The Indy Channel that the agency is investigating criminal activity in the area.
They didn't say the target of the investigation.
The Indy Channel adds that sources, though, say that the investigation was about the Medicaid and Medicare reimbursements and possible kickbacks.
Burkhart's home on Suffolk Lane in Carmel and his American Senior Communities office on Gray Road were seen with FBI agents.
The American Senior Communities said in the statement that despite being in a difficult situation, the issue won't cause problems in its operations.
"While this is a difficult situation, it will not affect ASC's operations, including its employees, other healthcare providers, and, most importantly, its residents," the company said.
The American Senior Communities also said in the statement that they are launching an immediate search for to replace their vacant CEO position.
The company is looking for someone "who will embrace ASC's core values of C.A.R.E. - Compassion, Attentiveness, Relationship, and Excellence - and promote and maintain the ASC culture of caring for others while demonstrating the highest level of integrity."
The American Senior Communities' board of managers will be temporarily assuming the role of the company's CEO while the search is being conducted, according to the company's statement.
