Michigan AG Dana Nessel sues nursing home owner, alleges $111M Medicaid false claims

Michigan Attorney General Dana Nessel called the care and sheer number of violations against a Southeast Michigan nursing home operator "atrocious." 

"We allege that Fahim Uddin, a major nursing home owner operating Pioneer Healthcare Management Inc, knowingly and intentionally placed hundreds of patients at risk of harm while operating related companies in order to enrich himself," Nessel said. 

The case centers on the Michigan Medicaid False Claim Act and what Nessel calls "failure to care." 

"[That's when] a nursing home or nursing home owner and operator is knowingly providing care which is so substandard that it fails to meet even the most minimally required standards for Medicaid or Medicare reimbursement despite submitted claims stating otherwise," Nessel said. 

Nessel alleges that Fahim Uddin and his companies accepted more than $111 million in Medicaid reimbursement and failed to meet minimal staffing requirements nearly 100% of the time across its nine facilities.  

"Each claim for payments submitted while the defendants violated the staffing, reporting, and cost reporting requirement was a false claim in violation of state law," Nessel said. 

According to Nessel, that harm wasn't just paperwork errors. She says this level of care led to injuries, wounds on patients, and even elderly patients leaving facilities in an unsafe way. 

"At Heritage Manor in Detroit, a 64-year-old resident was found by staff, by shift staff, on the floor face down with blood all around his head, unresponsive and cold," Nessel said. 

The nine care homes listed below are still operating — but Nessel said we could see new ownership take over care. 

In the meantime, the case against Uddin is being held in the 30th District Court in Ingham County.