American Health Companies, doing business as American Health Partners, agreed on Mar. 30 to pay $2,090,309 to the United States and Tennessee to resolve allegations under the False Claims Act related to its operation of Lewis County Nursing and Rehabilitation in Hohenwald, Tennessee. The agreement addresses claims that between 2019 and 2024, the facility billed Medicare and TennCare for services that were grossly substandard.
The case centers on protecting elderly and disabled residents who rely on nursing home care funded by taxpayer programs. Authorities said enforcement is necessary both for resident safety and public trust in healthcare funding.
“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.”
Tennessee Attorney General Jonathan Skrmetti also commented: “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. This settlement is proof that when we work together, providers who fail the vulnerable people they’re supposed to serve will be held accountable.”
Kelly Blackmon, Special Agent in Charge at the U.S. Department of Health and Human Services Office of Inspector General in Kentucky, said: “Ensuring that nursing home residents receive safe, appropriate, and dignified care is one of our top priorities. 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.”
Authorities alleged failures including inadequate wound care, infection control issues, insufficient fall protection measures, lack of prevention against weight loss or loss of motion among residents, as well as overprescription of antipsychotic medications.
In June 2023 admissions were temporarily suspended by state authorities after a survey found conditions detrimental or potentially detrimental to resident health or welfare at AHC Lewis County. Around late 2024 AHP sold its nursing homes; AHC Lewis County now has new ownership.
Of the total payment under this agreement—$1,196,074 goes to federal authorities while $894,235 goes directly to Tennessee. Officials noted these are civil allegations only; there has been no determination of liability.
The investigation involved multiple agencies including state investigators as well as attorneys from both federal and state offices.
