Michigan – Michigan Attorney General Dana Nessel said that six nursing homes in the Detroit region would pay $4.5 million to settle claims that they provided dangerously inadequate treatment while getting money from taxpayers. The settlement comes after a federal whistleblower complaint was filed by former Villa staffers who said they saw vulnerable patients being neglected and mistreated over and over again.
Nessel’s office says that Villa Financial Services LLC and Villa Olympia Investment LLC own the six nursing homes: Ambassador, Father Murray, Imperial, Regency, St. Joseph’s, and Westland. The lawsuit claimed that these homes failed in many ways: they didn’t have enough staff to care for the residents, they let infections spread unchecked, they didn’t keep residents safe from falls, they didn’t keep residents clean by leaving them in dirty clothes or bedding for long periods of time, and they didn’t take care of painful bed sores.
Despite denying the allegations, Villa agreed to the settlement, which will see $3.4 million paid to the federal government and $1 million to the State of Michigan. The U.S. Attorney’s Office for the Eastern District of Michigan and the Michigan Attorney General’s Health Care Fraud Division worked together to find a solution.
“Chronic neglect of nursing home residents is absolutely unacceptable, yet sadly all too common,” Nessel said in a release. “American taxpayers contribute billions every year to ensure quality care for our most vulnerable. When that care is not provided, my office will continue to work alongside our federal partners to hold those responsible accountable.”
Villa has also signed a five-year Corporate Integrity Agreement (CIA) with the Office of Inspector General of the U.S. Department of Health and Human Services as part of the settlement. Villa must engage an outside quality monitor to check that it is meeting care requirements and dealing with concerns when they come up under this agreement.
The case was handled by the Attorney General’s Health Care Fraud Division, which is Michigan’s federally accredited Medicaid Fraud Control Unit. The division gets most of its money from the federal government. For example, for fiscal year 2025, it will collect approximately $5.7 million from a grant from the U.S. Department of Health and Human Services. The State of Michigan will cover the other 25% of the budget.
State authorities highlighted that the settlement sends a clear message about what happens when nursing homes don’t take care of their patients’ health and safety. Investigators said they believe the deal, together with strict CIA control, will raise the standards of care and stop future abuse.
The case shows how important whistleblowers are for bringing to light bad conditions that might not be fixed otherwise. It also shows how serious state and federal agencies are about holding facilities responsible for caring for the most vulnerable members of society.