Great Lakes Wire

Michigan Attorney General Dana Nessel has announced a settlement of $4.5 million with six nursing homes in the Detroit area and their ownership companies, Villa Financial Services LLC and Villa Olympia Investment LLC. The settlement comes after allegations that these facilities accepted taxpayer funds while providing substandard care to residents. The involved facilities include Ambassador, Father Murray, Imperial, Regency, St. Joseph’s, and Westland.

The case began as a federal whistleblower lawsuit filed by employees of Villa who claimed to have witnessed resident mistreatment firsthand. Allegations against the nursing homes included inadequate staffing, failure to manage infections properly, neglect in preventing falls, lack of proper toileting care resulting in residents being left in soiled conditions for extended periods, and insufficient treatment of pressure ulcers.

Villa has denied these allegations.

"Chronic neglect of nursing home residents is absolutely unacceptable," Nessel stated. "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."

Under the terms of the agreement, Villa will pay $3,418,633 to the United States and $1,081,367 to Michigan. This follows an investigation by the U.S. Attorney’s Office for the Eastern District of Michigan and Michigan's Health Care Fraud Division.

Additionally, Villa will enter into a five-year Corporate Integrity Agreement (CIA) with the U.S. Department of Health and Human Services - Office of Inspector General. This agreement mandates that companies hire an independent quality monitor to assess their delivery of care and ability to address patient care issues effectively.

The case was managed by the Attorney General’s Health Care Fraud Division (HCFD), which serves as Michigan's federally certified Medicaid Fraud Control Unit. For fiscal year 2025, HCFD receives 75% of its funding from a grant awarded by the U.S. Department of Health and Human Services totaling $5,703,460.00; the remaining 25%, amounting to $1,901,152.00 is funded by Michigan.