Six Detroit-area nursing homes would pay $4.5 million to settle claims of dangerously inadequate care while receiving taxpayer funds, Michigan Attorney General Dana Nessel announced. The settlement follows a federal whistleblower complaint filed by former Villa employees who reported repeated mistreatment and neglect of vulnerable residents.
According to Nessel’s office, the homes—Ambassador, Father Murray, Imperial, Regency, St. Joseph’s, and Westland—are owned by Villa Financial Services LLC and Villa Olympia Investment LLC. The lawsuit accused these facilities of multiple failures, including:
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Insufficient staffing
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Unchecked spread of infections
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Unsafe environments leading to falls
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Poor hygiene, with residents left in soiled clothing and bedding
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Neglected treatment of painful bedsores
Although Villa denied the allegations, it agreed to pay $3.4 million to the federal government and $1 million to the State of Michigan. The U.S. Attorney’s Office for the Eastern District of Michigan partnered with Nessel’s Health Care Fraud Division to reach the agreement.
“Chronic neglect of nursing home residents is absolutely unacceptable, yet sadly all too common,” Nessel said. “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.”
As part of the settlement, Villa entered into a five-year Corporate Integrity Agreement (CIA) with the Office of Inspector General at the U.S. Department of Health and Human Services. The agreement requires Villa to hire an independent quality monitor to ensure compliance with care standards and to address any concerns that arise.
The case was led by the Attorney General’s Health Care Fraud Division, which serves as Michigan’s federally certified Medicaid Fraud Control Unit. The division receives the majority of its funding from the federal government—about $5.7 million in fiscal year 2025—while the State of Michigan covers 25% of its budget.
State officials emphasized that the settlement reinforces the consequences of failing to safeguard nursing home residents. Investigators believe the combined effect of the financial penalty and oversight under the CIA will improve care quality and prevent future abuse.
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The case highlights the crucial role of whistleblowers in exposing harmful conditions that might otherwise remain hidden. It also underscores the determination of state and federal agencies to hold care providers accountable for protecting society’s most vulnerable individuals.
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