A Tennessee nursing-home operator has agreed to shell out more than $2 million to settle federal and state claims that it billed Medicare and TennCare for care that allegedly was not up to basic standards. The deal, announced Monday, centers on Lewis County Nursing and Rehabilitation, known around town as AHC Lewis County, in Hohenwald and covers alleged issues stretching from 2019 through 2024.
What The Government Says Went Wrong
Federal prosecutors say the Hohenwald facility provided what they describe as "grossly substandard and/or worthless nursing home services" while still submitting claims to government health programs, according to NewsChannel 5. The alleged breakdowns included poor wound care, weak infection control, and failures to protect residents from falls.
U.S. Attorney Braden H. Boucek called the settlement "essential to protecting the elderly and disabled residents of our community," according to the same report, a clear signal that authorities saw the case as about more than just dollars and cents.
Facility History And Oversight
AHC Lewis County is licensed as a 131-bed skilled nursing facility in Hohenwald, according to a Medicare listing. The home has also appeared on a Centers for Medicare & Medicaid Services Special Focus Facility candidates list, a watchlist for nursing homes with ongoing quality concerns, according to CMS.
Who Runs The Place
American Health Partners, the Franklin-based company behind the AHC brand, oversees the facility. In October 2024, the company announced it would sell its American Health Communities and Rehab America divisions to a joint venture, according to a corporate news release.
The company says it owns and affiliates with dozens of post-acute and psychiatric facilities across Tennessee and Alabama, a footprint that shows why federal and state officials were paying close attention to how one of its branded centers operated.
The Legal Muscle Behind The Case
The settlement resolves claims brought under the federal False Claims Act, which allows the government to seek civil remedies, including treble damages and per-claim penalties, when false or fraudulent bills are sent to federal health-care programs, according to the Department of Justice.
In health-care cases, False Claims Act resolutions can also bring extra strings, such as monitoring, repayments, or even exclusion from federal programs in more difficult situations, according to the Justice Department.
Why Tennessee Officials Care
Tennessee regulators have already been sounding the alarm about nursing-home quality. In the state’s 2024 annual report, officials reported a sharp uptick in complaints and enforcement actions, with fall prevention and infection control ranking among the most frequently cited problems, according to the Tennessee Health Facilities Commission.
That backdrop helps explain why state and federal authorities pushed this case and why the settlement could ripple beyond Hohenwald, potentially shaping how long-term care facilities across Tennessee are watched and regulated.
Under the agreement, the money will be paid to the United States and to Tennessee to resolve the government’s claims and close this chapter of the investigation into care provided at AHC Lewis County.
