Six Michigan nursing homes involved in $4.5 million settlement over substandard care allegations
The Michigan Attorney General's office said it has reached a $4.5 million settlement with the owners of six Detroit-area nursing homes over a whistleblower lawsuit.
"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," Michigan Attorney General Dana Nessel said.
The companies involved in this case were Villa Financial Services LLC and Villa Olympia Investment LLC, owners of six Villa facilities: Ambassador, Father Murray, Imperial, Regency, St. Joseph's and Westland. The the settlement involved allegations that the companies accepted taxpayer funds while providing what it called "grossly substandard care" to residents.
The settlement wraps up an investigation by the Health Care Fraud Division of the Michigan Attorney General and the for the Eastern District of Michigan. The case began as a civil federal whistleblower lawsuit by Villa employees who claimed they witnessed the mistreatment of residents, the Michigan Attorney General's office said.
The complaints included allegations that the nursing homes failed to:
- Sufficiently staff the facilities to provide adequate care for the residents.
- Prevent falls and infections among the residents.
- Prevent and treat bed sores.
- Provide for toileting needs among the residents, so that some had soiled beds or clothing.
The AG's office said Villa has denied the allegations.
As part of the settlement, Villa will pay $3,418,633 to the United States and $1,081,367 to the State of Michigan.
As related by both state and federal officials, Villa will also follow the terms of a five-year quality-of-care Corporate Integrity Agreement with the U.S. Department of Health and Human Services - Office of Inspector General. This agreement requires an independent quality monitor to review the companies' delivery of care and evaluate their ability to prevent, detect, and respond to patient concerns.
The Attorney General's Health Care Fraud Division, which is the federally certified Medicaid Fraud Control Unit for Michigan, was involved in the investigation.
