$3.6M Nursing Home Settlement Highlights Ongoing Crisis in Infection Control and Resident Neglect

In a striking reminder of the continuing dangers facing vulnerable nursing home residents, the U.S. Department of Justice recently announced a $3.6 million False Claims Act settlement against a nonprofit nursing home chain and its affiliates. The case involved three nursing facilities across Pennsylvania and Ohio, all accused of delivering dangerously substandard care, including poor infection control practices, understaffing, and failure to safeguard residents’ basic rights.

The facilities operated under the American Health Foundation (AHF) and AHF Management Corporation, both of which continue to deny wrongdoing. Yet the sheer scope of the allegations—ranging from unnecessary drugging of patients to verbal abuse and unsanitary living conditions—offers a chilling glimpse into what can go wrong when nursing homes prioritize profit or convenience over resident well-being.

Grossly Substandard Conditions Across Multiple Facilities

The federal government’s complaint against AHF and its associated nursing homes described what it called “grossly substandard” care between 2016 and 2018. Facilities named in the suit include:

• Cheltenham Nursing & Rehabilitation Center in Philadelphia, PA

• The Sanctuary at Wilmington Place in Dayton, OH

• Samaritan Care Center and Villa in Medina, OH

According to the Department of Justice, these facilities allegedly:

• Failed to maintain clean and safe environments, with reports of dirty, pest-infested buildings

• Allowed verbal abuse and mistreatment of residents

• Administered unnecessary medications, including psychotropic drugs

• Neglected basic hygiene and infection control protocols

• Did not complete or maintain appropriate patient care assessments and treatment plans

• Failed to protect personal belongings of elderly residents

Although the settlement includes no admission of guilt, the facts presented in the complaint highlight issues that far too many families encounter when trusting nursing homes with their loved ones’ care.

Infection Control and Staffing: A Life-or-Death Combination

One of the most alarming aspects of the DOJ’s allegations is the failure in infection control protocols, which has gained increased scrutiny in the wake of the COVID-19 pandemic. Poor infection prevention doesn’t just violate healthcare standards—it puts elderly and medically fragile residents at serious risk of sepsis, pneumonia, MRSA, COVID-19, and other deadly conditions.

Compounding the problem was a systemic lack of adequate staffing—a known driver of neglect in nursing facilities. Without enough qualified nurses and aides on each shift, residents can go hours without care, medications may be mismanaged, and preventable injuries such as bedsores, falls, and infections can occur.

Overmedication and Resident Abuse

At Wilmington Place, authorities claim patients were repeatedly given unnecessary medications, a troubling trend that can lead to sedation, reduced quality of life, and increased risk of falls. The use of antipsychotic drugs to chemically restrain residents—especially those with dementia—has long been condemned by elder care advocates and the federal government alike.

Residents at other facilities were reportedly subject to verbal abuse and had their personal possessions left unsecured. These actions reflect an environment of disregard and mistreatment, one that no senior should ever have to endure.

Legal Consequences: Settlement and Integrity Agreement

To resolve the allegations, AHF agreed to pay $3.61 million and enter into a five-year corporate integrity agreement with the Department of Health and Human Services. This agreement mandates increased oversight of care quality and resident safety—essentially a court-mandated attempt to clean up the systemic failures revealed in the investigation.

Importantly, the DOJ chose not to exclude AHF from Medicare and Medicaid programs—a common penalty in False Claims Act cases—which allows these facilities to continue operating under federal healthcare programs, albeit under strict scrutiny.

What This Means for Nursing Home Residents and Families

This case is not an isolated incident. It reflects a broader, disturbing pattern in the long-term care industry: profit-driven management models, chronic understaffing, and weak enforcement mechanisms that allow negligent facilities to continue operating—even after repeated violations.

For families with loved ones in nursing homes, this story is a call to action. If you’ve noticed signs of:

• Poor hygiene or unsanitary conditions

• Unexplained injuries or bruises

• Rapid decline in mental or physical health

• Signs of emotional withdrawal or fear

• Missing personal items or unexplained medications

… it may be more than just bad care. It could be nursing home abuse or neglect, and you may have a legal case.

How KBD Attorneys Can Help Victims of Nursing Home Abuse

At KBD Attorneys, we represent families across Pennsylvania, Massachusetts, Washington, D.C., and beyond who are fighting back against negligent nursing homes. We believe every elder deserves dignity, safety, and compassionate care, and we work tirelessly to hold facilities accountable when they violate that trust.

When you come to us with a potential nursing home abuse or neglect claim, we:

• Conduct a thorough investigation into facility history, inspections, and staffing records

• Review medical records to identify signs of abuse, overmedication, or lack of care

• Consult with elder care experts and medical professionals

• Help you document injuries, expenses, and emotional trauma

• Pursue maximum compensation for medical costs, pain and suffering, and wrongful death if applicable

We are proud to represent victims in False Claims Act-related cases, bed sore lawsuits, wrongful death cases, and negligent care claims. Nursing homes that cut corners on care should be held accountable—and we’re here to make sure that happens.

Final Thoughts: Justice for the Vulnerable

The $3.6 million settlement with American Health Foundation is a step toward justice—but it’s not enough. For every case that makes headlines, countless others go unreported. That’s why families must stay informed, watch for warning signs, and take legal action when necessary.

If your loved one has been harmed in a nursing home in Philadelphia, Pittsburgh, Dayton, or anywhere across our service regions, don’t wait.

Contact KBD Attorneys today for a free, confidential consultation. We will listen, investigate, and fight to ensure your family gets the justice and compensation you deserve.

Source: McKnight’s Long-Term Care News – Infection control, staffing concerns lead to defiant nonprofit’s $3.6M False Claims settlement