News Summary
Six Detroit-area nursing homes have reached a $4.5 million settlement following allegations of neglecting elderly residents. The lawsuit, initiated by whistleblowers, claimed severe mistreatment, including failure to address infections and pressure ulcers, and inadequate staffing. Although the owners, Villa Financial Services LLC and Villa Olympia Investment LLC, denied the allegations, they agreed to a settlement that includes payments to the U.S. government and the state of Michigan, as well as a five-year quality-of-care agreement with oversight.
Detroit – Six nursing homes located in the Detroit area have agreed to a settlement totaling $4.5 million following serious allegations of neglecting elderly residents. The settlement, announced by Michigan Attorney General Dana Nessel on July 2, 2025, includes payments exceeding $3.4 million to the U.S. government and an additional $1 million to the state of Michigan.
The allegations of neglect emerged from a whistleblower lawsuit filed by employees of Villa Financial Services LLC and Villa Olympia Investment LLC, which own the nursing homes in question. The lawsuit detailed numerous accounts of mistreatment, including a failure to adequately prevent and treat residents’ infections, neglect in addressing pressure ulcers (commonly known as bed sores), and inadequate measures to prevent falls among residents.
Further alarming claims included reports that staff did not meet residents’ toileting needs, leading to instances where individuals were left sitting or lying in soiled beds and clothes for prolonged periods. Investigations revealed a consistent lack of sufficient staffing at these facilities, contributing to the neglect experienced by residents.
Although Villa has denied the allegations, they have agreed to the settlement as part of a broader corrective strategy. An important component of this settlement is the establishment of a five-year quality-of-care Corporate Integrity Agreement with the U.S. Department of Health and Human Services’ Office of Inspector General. This agreement requires Villa to hire an independent quality monitor, whose role will involve overseeing patient care and evaluating the company’s capability to prevent and address care-related issues.
The specific nursing facilities implicated in the allegations are:
- The Ambassador in Detroit
- Father Murray in Center Line
- Imperial in Dearborn Heights
- Regency in Taylor
- St. Joseph’s in Hamtramck
- Westland in Westland
The case was handled by the Attorney General’s Health Care Fraud Division with assistance from the U.S. Attorney’s Office for the Eastern District of Michigan. The investigation aligns with the U.S. Department of Justice’s 2025 National Health Care Fraud Enforcement Action, under which criminal charges were filed against 324 defendants connected to health care fraud and illegal drug diversion activities. Notably, the federal government has seized over $245 million in assets related to this enforcement action, indicating a significant commitment to combating health care fraud.
The nursing home industry has faced broader scrutiny in recent years, particularly in light of the COVID-19 pandemic, which magnified long-standing issues of care quality and oversight in facilities nationwide. The allegations against Villa Financial Services and Villa Olympia Investment serve as a stark reminder of the ongoing challenges faced within the sector, highlighting the need for rigorous standards and accountability to protect vulnerable populations.
As the settlement aims to address the current violations and improve future care, it underscores the importance of vigilant oversight in nursing homes to ensure the safety and well-being of residents. The commitment to enhanced monitoring and quality care will be crucial in restoring trust and ensuring that the necessary reforms are implemented effectively.
Deeper Dive: News & Info About This Topic
HERE Resources
Michigan AG Secures $4.5M Settlement in Nursing Home Neglect Case
Detroit Nursing Homes Settle $4.5 Million Over Resident Mistreatment
Additional Resources
