Detroit Nursing Homes Settle Over Fraud, Neglect Claims

Six Detroit-area nursing homes, owned by Villa Financial Services LLC and Villa Olympia Investment LLC, have agreed to a $4.5 million settlement following allegations of grossly substandard care and Medicare/Medicaid fraud. The case was brought forward by whistleblowers and investigated by the Michigan Attorney General’s Health Care Fraud Division and the U.S. Attorney’s Office. Accusations included severe understaffing, failure to prevent infections and falls, and leaving residents in soiled beds and clothing, while accepting taxpayer funds. Villa will pay over $3.4 million to the U.S. government and more than $1 million to the State of Michigan. Additionally, Villa must enter a five-year Corporate Integrity Agreement requiring oversight by an independent quality monitor, despite denying the allegations. State and federal officials highlighted the importance of accountability to safeguard vulnerable residents and public healthcare funds.