Nashville, Tennessee – A Tennessee-based healthcare company has agreed to pay more than $2 million to resolve serious allegations tied to the care of elderly residents at one of its nursing home facilities, following a multi-agency investigation into conditions that officials described as deeply concerning.
United States Attorney Braden H. Boucek for the Middle District of Tennessee announced that American Health Companies, LLC, which does business as American Health Partners, will pay $2,090,309 to both the federal government and the state of Tennessee. The settlement addresses claims brought under the False Claims Act involving the company’s operation of Lewis County Nursing and Rehabilitation, a 131-bed facility located in Hohenwald.
During the period between 2019 and 2024, the facility operated as AHC Lewis County under the ownership of American Health Partners, a Franklin-based company that provides senior health services and owned several nursing homes during those years.
Allegations of poor care and unsafe conditions
According to the United States and the state of Tennessee, the facility failed in multiple ways to meet required standards of care for residents. Investigators alleged that AHC Lewis County “systematically provided grossly substandard and/or worthless nursing home services” while still billing Medicare and TennCare for care that did not meet expectations.
Among the failures cited were issues related to basic health and safety. The facility allegedly did not provide proper wound care, did not follow adequate infection control practices, and failed to protect residents from falls. Officials also pointed to concerns about residents experiencing preventable weight loss and losing their range of motion due to lack of proper care.
Another troubling allegation involved the overuse of medication. Authorities claimed that the facility overprescribed antipsychotic drugs to residents, raising concerns about whether medications were being used appropriately or in the best interest of patient health.
The situation escalated in June 2023, when the Tennessee Health Facilities Commission temporarily suspended new admissions to the nursing home. That decision followed a survey report that found conditions at the facility to be, or likely to be, harmful to residents’ health, safety, or overall well-being.
Officials say these failures were not just about one facility but about broader accountability. “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.”
State leaders echoed those concerns, stressing the importance of protecting vulnerable populations. “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.”
Federal health investigators also emphasized the seriousness of the findings. “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.”
Settlement and ongoing accountability
As part of the agreement, American Health Partners will pay $2,090,309, along with interest. Of that total, $1,196,074 will go to the United States, while $894,235 will be allocated to the state of Tennessee.
Officials noted that the claims resolved by the settlement are allegations only, and there has been no formal determination of liability. Still, the agreement marks a significant financial resolution tied to the investigation.
Around the end of 2024, American Health Partners sold its nursing home operations, and the Lewis County facility is now under new ownership. Authorities did not indicate whether conditions have improved since the change.
The case was the result of a joint investigation involving the Tennessee Bureau of Investigation, the U.S. Attorney’s Office, 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 and state attorneys Leslie Williams Fisher and Haylie Robbins handled the case.
The outcome underscores a broader effort by federal and state agencies to ensure that facilities receiving public funds provide proper care, and that those who fail to meet those standards face serious consequences.
