False Claims Act

American Health Partners has agreed to pay more than $2 million to the federal government and the state of Tennessee.

The settlement stems from AHP’s violations of the False Claims Act, as the company billed Medicare and TennCare for grossly substandard nursing home services at Lewis County Nursing and Rehabilitation, LLC, from 2019 and 2024.

The Justice Department says the facility failed to provide residents with proper wound care, appropriate infection control, and protection from falls.

“This settlement is essential to protecting the elderly and disabled residents of our community who depend on quality care,” said United States Attorney Braden 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.”

By establishing a complex web of shell companies, reporting inflated staffing numbers, and using “tunneling” to strategically move funds around, nursing homes companies think they can defraud Medicare and get away with it. This settlement proves that they cannot.