Michigan Attorney General Dana Nessel announced a $4.5 million settlement with six Detroit-area nursing homes and their ownership companies, Villa Financial Services LLC and Villa Olympia Investment LLC, over allegations that they accepted taxpayer funds while providing grossly substandard care to their residents.
The following six Villa facilities were part of the settlement agreement: Ambassador, Father Murray, Imperial, Regency, St. Joseph’s, and Westland.
The case originated as a federal whistleblower lawsuit by Villa employees, who claimed they personally witnessed the mistreatment of residents. The complaint alleged that the nursing homes failed to:
- Sufficiently staff the facilities to adequately care for residents;
- Prevent, control, and treat infections;
- Prevent falls by residents;
- Provide for residents’ toileting needs, so that residents sat or lay in soiled beds and clothes for extended periods; and
- Prevent and treat pressure ulcers, also known as bed sores.
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.
Source: Michigan Attorney General Office
Topics Michigan
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