Six Michigan Nursing Homes in $4.5M Care Neglect Settlement

Six Michigan Nursing Homes in $4.5M Care Neglect Settlement

Introduction

The Michigan Attorney General’s Office announced a $4.5 million settlement with the owners of six Detroit-area nursing homes following a whistleblower lawsuit. Attorney General Dana Nessel said her office will continue working with federal partners to hold accountable those who fail to provide promised quality care to vulnerable residents funded by taxpayer dollars.

Companies and Facilities Involved

The settlement involves Villa Financial Services LLC and Villa Olympia Investment LLC, which own six Villa facilities: Ambassador, Father Murray, Imperial, Regency, St. Joseph’s, and Westland. State officials alleged the companies accepted taxpayer funds while delivering “grossly substandard care” to residents.

Origin of the Case

The agreement concludes an investigation by the Michigan Attorney General’s Health Care Fraud Division and the U.S. Attorney’s Office for the Eastern District of Michigan. The case began as a federal civil whistleblower lawsuit filed by Villa employees who said they witnessed resident mistreatment.

Allegations of Neglect

The complaints accused the nursing homes of failing to adequately staff their facilities, prevent falls and infections, treat and prevent bed sores, and address residents’ toileting needs—leading in some cases to soiled clothing and bedding. Villa has denied all allegations.

Settlement Terms

Under the agreement, Villa will pay $3,418,633 to the United States and $1,081,367 to the State of Michigan. In addition, the companies will adhere to a five-year quality-of-care Corporate Integrity Agreement with the U.S. Department of Health and Human Services Office of Inspector General.

Oversight and Monitoring

As part of the Corporate Integrity Agreement, an independent quality monitor will assess Villa’s delivery of care and its systems for preventing, detecting, and addressing patient concerns.

Investigation Partners

The Attorney General’s Health Care Fraud Division—Michigan’s federally certified Medicaid Fraud Control Unit—played a key role in the investigation alongside federal authorities.