A bankrupt healthcare company in Brentwood is now facing a federal lawsuit over the condition and billing practices at six of its nursing homes.
The case was announced Wednesday against Vanguard Healthcare LLC, which runs nursing homes in several states. (There is an unaffiliated hospital chain with a similar name.)
Prosecutors charge that Vanguard’s facilities earned big profits while providing “grossly substandard care” — and that the company fraudulently billed Tennessee’s Medicaid program.
Investigators found forged paperwork, shortages of staff and supplies, and a failure to provide basic nursing services. That means wounds and pain went untreated while unnecessary medications and physical restraints were used.
Residents suffered falls, ulcers and malnutrition, authorities said.
Altogether, the case covers nearly 800 beds run by Vanguard over the course of five years:
- Boulevard Terrace Rehabilitation and Nursing Center in Murfreesboro
- Crestview Health and Rehabilitation in Nashville
- Glen Oaks Health and Rehabilitation in Shelbyville
- Imperial Gardens Health and Rehabilitation in Madison (now closed)
- Manchester Health Care Center, in Manchester
- Poplar Point Health and Rehabilitation in Memphis
The lawsuit also names Vanguard’s former director of operations, Mark Miller, for failing to correct problems.
In a statement, the company denies the allegations.
“Vanguard will vigorously defend its position,” the statement reads. “We are committed to the consistent delivery of high-quality care, and meeting the needs of the residents and communities we serve remains our highest priority.”
The lawsuit is being carried out under the False Claims Act, which has become a frequent method to root out fraud. Even Vanguard has settled a prior case, in 2011, which cost the company $2 million.
The Middle Tennessee district has claimed more than $180 million dollars from healthcare companies in the past three years.
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