(DETROIT) — Six Detroit-area nursing homes and their ownership companies have agreed to a $4.5 million settlement with the Michigan Department of Attorney General over allegations that the facilities were providing grossly substandard care to their residents.

The department announced the settlement with Villa Financial Services LLC and Villa Olympia Investment LLC on Wednesday. The facilities in question include Villa’s Ambassador, Father Murray, Imperial, Regency, St. Joseph’s and Westland locations.

Villa has denied the allegations but agreed to the settlement announced Wednesday.

“Chronic neglect of nursing home residents is absolutely unacceptable, yet sadly all too common,” Michigan Attorney General Dana Nessel said in a statement. “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.”

Villa will pay $3.41 million to the U.S. government as part of the settlement and $1.08 million to the state of Michigan, the department said.

The department’s Health Care Fraud Division handled the case, which is a federally certified Medicaid Fraud Control Unit for the state, which received 75% of its funding from a U.S. Department of Health and Human Services grant of $5.7 million in 2025. The investigation also included involvement from the U.S. Attorney’s Office for the Eastern District of Michigan.

A whistleblower complaint from Villa employees jumpstarted the inquiry, as employees claimed they personally witnessed the mistreatment of residents. It was alleged that the nursing homes failed to sufficiently staff the facilities, prevent and treat infections, prevent falls, and failed to provide toileting needs that resulted in residents sitting in or laying in soiled beds or clothes for long periods of time.

The facilities also failed to prevent pressure ulcers, also known as bed sores.

Villa must also enter into a five-year quality-of-care Corporate Integrity Agreement with the U.S. DHHS and its Office of Inspector General. The agreement requires the companies to retain an independent quality monitor to review their provision of care and their ability to detect and respond to patient care issues.