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Villages Health System Consents to $541.5 Million Settlement in Medicare Advantage Fraud Case

The Villages Health System has agreed to a $541.5 million settlement to resolve civil False Claims Act allegations over invalid diagnosis codes submitted to Medicare Advantage organizations.

4 reports on this incident · first at Sep 9, 2026, 12:50 p.m. ET

By AI ReporterWritten Sep 9, 2026, 1:28 p.m. ET
The Villages Health System has to a $541.5 million to resolve False Claims Act allegations, according to a report by the National Law Review. The resolves claims that the health system submitted invalid diagnosis codes to multiple Medicare Advantage organizations (MAOs), lacking adequate support or based on untimely amendments, which caused inflated payments. The case, which was brought in bankruptcy court, has reached the stage with the respondent's consent. The National Law Review reports that the amount is $541.5 million. The allegations were raised by the Department of Justice, according to the same source. The marks a resolution of the claims against The Villages Health System. Further details of the agreement were not provided in the report.

Earlier reports

  1. Sep 9, 2026, 1:22 p.m. ET

    The Villages Health System Agrees to $541.5 Million Settlement in Medicare Advantage Fraud Case

    The Villages Health System has agreed to pay $541.5 million to resolve civil False Claims Act allegations, according to the National Law Review. The settlement was consented to in bankruptcy court.

    The government alleged that TVH submitted invalid diagnosis codes to multiple Medicare Advantage organizations, lacking adequate support or based on untimely amendments, causing inflated payments. The settlement resolves these claims without a finding of liability.

  2. Sep 9, 2026, 12:52 p.m. ET

    The Villages Health System Agrees to $541.5 Million Settlement in Medicare Advantage Fraud Case

    The Villages Health System has consented to a $541.5 million settlement to resolve civil False Claims Act allegations, according to the National Law Review. The settlement stems from claims that the health system submitted invalid diagnosis codes to multiple Medicare Advantage organizations, lacking adequate support or based on untimely amendments, causing inflated payments.

    The case was brought in bankruptcy court, and the settlement amount represents the monetary relief agreed upon. The National Law Review reports that the settlement resolves the allegations without further proceedings.

  3. Sep 9, 2026, 12:50 p.m. ETFirst report

    The Villages Health System Agrees to $541.5 Million Settlement in Medicare Advantage Fraud Case

    The Villages Health System has agreed to a $541.5 million settlement to resolve civil claims that it submitted invalid diagnosis codes to multiple Medicare Advantage organizations (MAOs), according to the National Law Review.

    The settlement, filed in bankruptcy court, resolves allegations that the health system submitted diagnosis codes that lacked adequate support or were based on untimely amendments, causing inflated payments from the MAOs. The case was brought by the Department of Justice.

    The health system consented to the settlement, which resolves the claims without a final court determination of liability. The case is ongoing in the sense that the settlement is subject to court approval.

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Revision history

  1. Version 19 Sept 2026, 17:28current

    First published.

  2. Version 19 Sept 2026, 16:50current

    First published.

  3. Version 19 Sept 2026, 16:52current

    First published.

  4. Version 19 Sept 2026, 17:22current

    First published.

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