Michigan Attorney General Dana Nessel has reached a $4.5 million settlement with six Detroit-area nursing homes and their ownership companies over allegations of neglect.
On Wednesday (July 2), Nessel announced that Villa Financial Services LLC and Villa Olympia Investment LLC were under investigation for allegations that they accepted taxpayer funds while providing grossly substandard care to their residents.
The six Villa facilities, part of the settlement agreement, are:
The case originated as a federal whistleblower lawsuit filed by Villa employees, who claimed to have witnessed the mistreatment of residents.
The complaint alleged that the nursing homes failed to:
Villa has denied the allegations.
As part of the agreement, Villa will pay $3,418,633 to the United States and $1,081,367 to the State of Michigan.
The settlement follows an investigation by the United States Attorney’s Office for the Eastern District of Michigan and the Health Care Fraud Division of the Michigan Department of Attorney General.
Villa will also enter into a five-year quality-of-care Corporate Integrity Agreement (CIA) with the U.S. Department of Health and Human Services’ Office of the Inspector General.
The CIA requires companies to retain an independent quality monitor to review the companies’ delivery of care and evaluate their ability to prevent, detect, and respond to patient care problems.
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