At Olsman MacKenzie Peacock, we believe that nursing home residents deserve safety, dignity, and respect. When facilities betray that trust and fail to provide even the most basic standards of care, it’s not just a moral failure—it’s a violation of federal law. That’s why we’re encouraged to see that Villa Financial Services LLC, Villa Olympia Investment LLC, and six of their southeast Michigan nursing homes have agreed to pay $4.5 million to resolve serious allegations of systemic neglect and substandard care.
The six facilities named in the settlement—The Ambassador, Father Murray, Imperial, Regency, St. Joseph’s, and Westland—were accused in a federal whistleblower lawsuit of violating the False Claims Act. According to the United States and the State of Michigan, these nursing homes accepted Medicare and Medicaid funds while failing to provide residents with adequate care. Among other serious allegations, the facilities were accused of:
- Failing to sufficiently staff their facilities with qualified and appropriately trained caregivers;
- Failing to take necessary steps to prevent, control, and treat infections;
- Failing to follow fall-prevention protocols, leading to unnecessary injuries;
- Failing to respond to residents’ toileting needs, resulting in residents being left in soiled clothing and beds; and
- Failing to prevent and treat pressure ulcers, also known as bedsores.
These failures represent some of the most common and devastating forms of neglect that vulnerable residents suffer in long-term care facilities. What makes this case particularly alarming is the breadth and pattern of substandard care alleged across multiple locations in the Villa system.
As part of the settlement, the Villa entities will enter into a five-year Corporate Integrity Agreement (CIA) with the U.S. Department of Health and Human Services Office of Inspector General. The CIA requires the retention of an independent quality monitor to evaluate Villa’s delivery of care and its ability to detect and address patient care problems going forward. The agreement is a critical step toward accountability, but it does not erase the harm already suffered by residents and families.
This case was the result of a coordinated investigation led by the U.S. Attorney’s Office for the Eastern District of Michigan, the U.S. Department of Justice’s Commercial Litigation Branch – Fraud Section, and the Michigan Department of Attorney General’s Health Care Fraud Division. The original lawsuit was filed by courageous Villa employees who witnessed these abuses firsthand and chose to speak up under the federal False Claims Act’s whistleblower provisions.
As Michigan Attorney General Dana Nessel rightly stated: “Chronic neglect of nursing home residents is absolutely unacceptable, yet sadly all too common.” We at Olsman MacKenzie Peacock could not agree more.
Protecting the Rights of Nursing Home Residents
If your loved one has experienced neglect, abuse, or substandard care in a nursing home, assisted living facility, or adult foster care home, we are here to help. At Olsman MacKenzie Peacock, we have decades of experience holding long-term care facilities accountable for the harm they cause. We fight for justice for victims and their families and work tirelessly to ensure that no resident is treated as disposable.
To learn more about how we can help or to speak with an attorney about your case, contact us today.