Attorney General Nessel Announces $4.5 Million Settlement with Detroit Nursing Homes Over Substandard Care Allegations

LANSING – Michigan Attorney General Dana Nessel has 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. 

“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 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 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.  

The Attorney General’s Health Care Fraud Division (HCFD) handled this case for the Department.  The HCFD is the federally certified Medicaid Fraud Control Unit for Michigan and it receives 75% of its funding from the U.S. Department of Health and Human Services under a grant award totaling $5,703,460.00 for the fiscal year 2025. The remaining 25% percent, totaling $1,901,152.00, is funded by the State of Michigan.