WFMY first learned last week Shipman Family Home Care is late to pay their more than 240 employees.
The owner, Gladys Shipman, blamed Medicaid for the funding shortage and promised to pay her workers this Wednesday.
While this was all unexpected news for her employees last week, Shipman has known about the problem for at least two years.
According to a letter addressed to the Inspector General back in 2010, Shipman says she knew some of her Medicaid claims did not follow state or federal laws.
The result was an overpayment to Shipman Family Home Care totaling $2 million.
"When that bill comes through our claim services here at the DHHS, because of federal law, we are required to pay that claim almost immediately," explains Chrissy Pearson with the Department of Health and Human Services.
Pearson there is a way to check claims before they're paid.
It's called pre-payment review and the state actually tried to add Shipman to that list but her attorneys blocked the effort.
"In this particular case, Shipman's attorneys were successful in preventing us from using that tool, that's unfortunate for our efforts to make sure that we are paying the company accurately," said Pearson.
Shipman's isn't the only business the state is looking into.
From June 2011 to May 2012 - the state has issued more than 3,000 notices of overpayment totaling more than $158 million.
Over this same year, the state referred 36 Medicaid providers to the Attorney General's Office for possible prosecution, suspended payment to 47 providers, and placed 26 providers on prepayment suspension.
As for that overpaid money, the $2 million the state says Shipman owes them, there is no guarantee they will ever see one penny of that.
"We don't go into it expecting that to happen. We will do everything we can to get that money back; obviously that's a best case scenario," said Pearson.
Although the state has issued a recoupment notice to Shipman, it continues to pay them.
Below are the Medicaid claims paid to Shipman over the past three months.
Tuesday, they will be paid another $73,401.44 bringing their total claims paid to $547,328.69.