Nessel sues nursing home operator over alleged Medicaid fraud

Michigan Attorney General Dana Nessel filed a civil lawsuit Thursday against Fahim Uddin, Pioneer Health Care Management, doing business as Legacy Healthcare Management, and nine Southeast Michigan nursing home facilities, alleging they fraudulently collected more than $111 million in Medicaid reimbursements.

The complaint alleges the defendants violated the Michigan Medicaid False Claim Act by accepting Medicaid payments while failing to maintain required staffing levels. The attorney general’s office said Uddin and his companies intentionally understaffed the facilities, placing hundreds of residents at risk.

The lawsuit follows a two-year investigation that began in October 2024 into chronic understaffing at the nine nursing homes. The facilities were licensed for 508 beds and housed an average of 394 residents, and allegedly failed to meet minimum staffing requirements based on residents’ care needs about 96% of the time.

Between 2020 and 2025, the defendants received more than $111.2 million in Medicaid reimbursements, according to the lawsuit. Nessel is seeking to recover the full amount, plus triple damages and civil penalties of $5,000 to $10,000 for each alleged violation.

Read the full story at WILX.