American Health Companies, dba American Health Partners, Agrees to Pay Over Two Million Dollars to Resolve False Claims Act Liability Involving a Tennessee Nursing Home

NASHVILLE - United States Attorney Braden H. Boucek for the Middle District of Tennessee announced today that American Health Companies, LLC ("AHC"), doing business as American Health Partners ("AHP"), has agreed to pay $2,090,309 to the United States and Tennessee to resolve False Claims Act allegations related to billing Medicare and TennCare for grossly substandard nursing home services from Lewis County Nursing and Rehabilitation, LLC, between 2019 and 2024. During those years, Lewis County Nursing and Rehabilitation did business as AHC Lewis County and operated as a subsidiary of AHP. AHP is a company headquartered in Franklin, Tennessee, that provides senior health services and owned nursing homes, including AHP Lewis County, during the relevant years. AHC Lewis County was a 131-bed facility in Hohenwald, Tennessee.

"This settlement is essential to protecting the elderly and disabled residents of our community who depend on quality care," said United States Attorney Braden H. Boucek. "But it is equally essential to protect the taxpayers who fund these programs. When facilities inflate charges while cutting corners on care, they undermine both quality for the people they serve and the public trust. Strong enforcement sends a clear message that exploiting seniors and the American taxpayer will have real consequences."

"We're proud to team up with our federal partners to ensure there is no safe harbor for those who profit from neglect of Tennessee seniors," said Tennessee Attorney General Jonathan Skrmetti. "This settlement is proof that when we work together, providers who fail the vulnerable people they're supposed to serve will be held accountable."

"Ensuring that nursing home residents receive safe, appropriate, and dignified care is one of our top priorities," said Kelly Blackmon, Special Agent in Charge at the U.S. Department of Health and Human Services, Office of Inspector General in Kentucky. "The substandard conditions identified at AHC Lewis County represent an unacceptable failure to meet the basic obligations required of facilities that participate in Medicare and TennCare. We will continue to work with our federal and state partners to hold providers accountable when they place residents' health and safety at risk."

The United States and Tennessee alleged that AHC Lewis County systematically provided grossly substandard and/or worthless nursing home services that failed to meet the required standards of care in various ways. For example, the United States and Tennessee alleged that AHC Lewis County failed to provide residents with proper wound care, appropriate infection control, and protection from falls. The United States and Tennessee similarly alleged that AHC Lewis County failed to prevent residents from weight loss and loss of their range of motion. The United States and Tennessee also alleged that AHC Lewis County overprescribed antipsychotic medications to residents.

In addition, in June 2023, the Tennessee Health Facilities Commission temporarily suspended admissions to AHC Lewis County due to a survey report that found conditions at the facility to be, or likely to be, detrimental to the health, safety, or welfare of residents. Around the end of 2024, AHP sold its nursing homes, and AHC Lewis County now operates under new ownership.

Under the settlement agreement, AHP will pay a total of $2,090,309, plus interest. Of that amount, $1,196,074 goes to the United States, and $894,235 will go to Tennessee.

The civil claims settled by this Settlement Agreement are allegations only, and there has been no determination of liability.

The resolution of this matter was the result of an investigation by the Tennessee Bureau of Investigation and the U.S. Attorney's Office with assistance from the U.S. Department of Health and Human Services' Office of Inspector General and the Tennessee Attorney General's Office. Assistant U.S. Attorney Ellen Bowden McIntyre represented the United States, and Tennessee Assistant Attorney General Leslie Williams Fisher represented Tennessee.

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