An Oregon security firm is suing a well-known traveling nurse contractor, saying it owes more than $724,000 in unpaid security services at COVID-19 testing sites in the Portland metro area.
Salem-based Wright Security Enterprises filed the lawsuit Wednesday in federal court against Colorado-based Jogan Health, a company that Oregon contracted with during the pandemic to provide traveling nurses in hospitals and long-term care facilities and handle other COVID-19 needs like testing sites. Jogan Health didn’t immediately respond to a request for comment.
Security grew as a concern during the pandemic as health care workers reported a surge of erratic, threatening or even violent behavior from patients and others.
The security firm claims its contract with Jogan Health began in March and provided security services at 19 COVID-19 testing sites in Washington and Clackamas counties as part of Jogan’s Oregon Health Authority contract. The health authority is not a plaintiff or defendant in the lawsuit.
After receiving invoices, Jogan Health paid some invoices, but not others and didn’t voice any concerns, the lawsuit claims.
On April 26, the security firm sent Jogan Health an itemized list of outstanding invoices, requesting payment, the lawsuit said. A couple weeks later, Jogan Health terminated the contract, with the invoices still unpaid, the lawsuit alleges.
The lawsuit said the unpaid balance is $724,788.55. The lawsuit seeks at least that amount and possibly more in damages and attorney fees.
Jogan Health benefitted unfairly from the unpaid work, which helped fulfill its Oregon Health Authority contract, the lawsuit said.
“Upon information and belief, Jogan Health has been paid or stands to be paid by the Oregon Health Authority, and has accepted funds from the Oregon Health Authority based, in part, on the services rendered by Wright Security,” the lawsuit says. “Jogan Health’s retention of these funds without paying Wright Security is wrongful, inequitable, and unjust.”
The company has reaped millions from its pandemic work in Oregon. Its contract for traveling health care workers in hospitals and long-term care facilities was $250 million in 2021, records show.
The Colorado company has faced allegations of unpaid work on other occasions in Oregon and its home state, a review of public records and media reports shows.
In April, a former employee filed a court claim seeking payment of $9,600 in unpaid wages and penalties. That lawsuit was later dismissed at the plaintiff’s request, which suggests it was settled out of court. Two pending unpaid wage claims are on record with the Oregon Bureau of Labor and Industries.
In Colorado, Jogan Health has received complaints from state officials about the company’s management of COVID-19 vaccination sites and faced allegations of not paying a subcontractor $5 million even while purchasing multi-million homes, according to a report in a Colorado media outlet.
Traveling nurses who went to Colorado to vaccinate people have complained to reporters that the company stiffed them on wages.
You can reach Ben Botkin at [email protected] or via Twitter @BenBotkin1.
