I asked in July where has all the money gone in Villages Health?
 

As the bankruptcy has progressed the Villages Health has maintained nothing to see here.
The government of the United States has started to post objections to the TVH claims.

Here is a cut and paste from our government's response.

On August 18, 2025, the Debtor disclosed that between 2022 and 2024 that
approximately $216.2 million was paid to related entities for rent, paydown of a line
of credit with its majority shareholder, and tax-related distributions to the Debtor’s
owners. Doc. 160 at 3-4, ¶ 11(a)-(c). At this juncture, it would be improper for the
Debtor to potentially provide releases to insiders without consideration or
explanation as to the liability being released.

Oops .
When a Debtor files they usually owe everyone, They have stiffed the landlord, stiffed entities that they owed money, didn't make voluntary pre payments, etc.
TVH paid their rent to closely related entities. Moves like this will make the lawyers rich as more pile on.
I don't think that this will delay the deal unless the new buyer is expected to shoulder some of the liability of these payments.

Things have gone relatively quiet since the objections filed by United Health Care and Florida Blue a while back. Last Tuesday was the deadline for prospective bidders to submit a bid higher than Centerwell’s $50 million stalking horse bid to buy the company. Nothing has been reported, so who knows if any bids were made? It would be interesting to hear how the bankruptcy court responds to the objections? Every few days I do a search to see if there is any latest news regarding the bankruptcy case, but the search always yields nothing but old news. There certainty has to be lots going on that’s not in the public eye, and hopefully more public information will become available sometime soon?

Medicare Fraud Poster displayed in Villages Health Office....
 

Ironic....

This has been posted before.

If the payments are fair, reasonable and customary there's nothing to "pile" onto.

On September 5, 2025, U.S. officials filed two objections to the proposed sale order for The Villages Health’s assets to CenterWell Senior Primary Care (Humana’s subsidiary) for $50 million. The objections focus on the language in the sale order, which the government argues is overly broad and could shield an extensive list of parties from civil or criminal liability related to the $361 million Medicare overbilling issue. Specifically, the government is concerned that the sale order might prevent it from pursuing claims against the final buyer or other parties, not only for the overbilling case but also for unrelated healthcare claims. The U.S. Attorney’s objection emphasizes that the sale should not impede ongoing investigations into the overbilling, which was self-reported by The Villages Health in December 2024 after discovering improper Medicare coding practices.

Partially correct.

The "overpayments" were identified many months BEFORE the bankruptcy filing---last year, in fact. The "payback (with interest and penalties)" is probably the main reason for the bankruptcy filing.

So how does an owner get money out of an owned company?

1) the owners can put debt on the acquisition, which means that the company constantly owes money to the owner.

debit cash
credit debt amount

2) the owners can pay themselves by dividending cash from the company to the owners.
credit cash
debit dividends to parent

These two ways are how the cash "disappears" from the company, all legal.

So the owner can drain the cash from a company with dividends, which then makes them insolvent, and can declare bankruptcy, in this case, the repayments and interest to CMS is bankrupting the company, along with the owners most likely dividending themselves cash prior to losing it all to the government.

If a solvent company is sold, the cash belongs to the seller's, so that the selling owners dividend themselves the cash, and the purchaser must capitalize the company with cash, creating debt on the company.

That's the accounting processes here at work. I do not know the specific case particulars, this is just the legal accounting processes which are all legal, to a point, criminality is a different issue. .

Many of the TVH bankruptcy filings at this point are common practice by interested parties trying to preserve their interests before a bankruptcy judge issues final orders to close the bankruptcy case (including approving the TVH sale to potentially the Humana entity).

Whether the judge does anything with each of these filings by interested parties is unknown at this point.

But if the judge were to allow the U.S. Attorney to go after the buyer of TVH (e.g, Humana) in the future, it might result in the buyer backing out by withdrawing its purchase offer. That might leave TVH patients in a bad position of no one to take over. Potential buyers of TVH scared away by risk from the U.S. Attorney is not a good outcome in this case.

And that is _unlikely_ as the bankruptcy judge will be balancing outcomes.

If this is true, it confirms the US Attorney’s office has open investigations.

...

Where has all the money gone? To a bunch of crooks and now a portion is going to legal and financial advisors who are going to try to wiggle their hoodlum clients out of a $360 million dollar Medicare fraud indictment.

I wish everybody who lives in the villages will take a few minutes and go to the Florida Attorney General‘s website and register a complaint and ask for an investigation or call the phone number there and make a complaint the more complaints that it generated the more possibility that the federal government will look into what’s going on here

Surely you don't expect substantive answers on a public forum that has become internationally notorious for misinformation (not moderators fault).

That horse left the barn months ago. It's rounded the turn and on the home stretch.

I wouldn't be too quick to assume anyone walked away with the money, although that is possible. I retired from a hospital that was historically comfortably in the black pre-COVID and post-COVID grossing more money than ever but still losing $2M/month in large part because locum expenses and government's continued bundling and payment reductions. Many in healthcare left during and after COVID because of burnout, COVID/post-COVID culture changes, skimping on staff because of personal shortages, consolidation with "stronger/bigger" hospitals with different priorities, etc. I wouldn't be surprised if most of the money was burnt trying to keep operations running. But we'll have to wait and see.

Absolutely, positively the most likely scenario. But time will tell. The naiver posters on these threads believe that if there is an "overcharge", that money is just sitting in a drawer (or somebody's pocket). They have no concept of operational expenses

Terrible
 

I’m not sure what I’m disappointed about most. The thought of losing my provider or the Developer being so greedy. This doesn’t need settled as a bankruptcy as much as we all need to know and perhaps get back all the money that was stolen.

What's your proof of greed??

But then again many of us have a great concept of operational expenses AND profits! And then to top it off you have Medicare Advantage, anything you want for free. Well, if you were able to get what you needed..

Or for that matter, what's his proof that the money was "stolen"????

Forensic accts should be able to figure out where the money went

Very easy to do, but we are miles away from "stolen", "greed", "throw the family in jail".

Agreed, that’s all speculation. What is troublesome though, is the seeming resistance to open up the books, as evidenced by the insider DIP financing. One would think that if there is nothing to hide, TVH would be eager to open up the books to quell speculation and exonerate themselves?

They are private companies.
They have no obligation to "open up the books" to the public.
I've never a privately held company wanting to open books to the public.

I suspect some of the above but there are others in a better position to determine what happened.

I’m well aware that private companies aren’t required to “open up their books”. I had private placement lending specialists reporting to me when I managed the portfolio of a large life insurance company. That being said, not having an obligation to open up their books didn’t keep the private companies we lent to from opening up their books to us. If a company has nothing to hide, they would absolutely be willing to open up their books in exchange for more favorable loan terms. A couple of rules I always followed throughout my career was that I never did business with Companies that shielded transparency and I always ran away when seemingly expedited time constraints were imposed on a transaction. TVH appears to be taking evasive actions regarding transparency as well as pushing very hard for an expedited sale. Two huge red flags!

"The books" are open. The Bankruptcy court isn't going to approve any DIP financing, without having a clear understanding of TVH's financial condition.

The legal "look back" period runs 1-4 years under Federal Law, depending on the circumstances. There are no secrets in Bankruptcy, especially one of this type.

Perhaps you knowledge can inform my lack ? Who would buy a failing business without examining the books ?

As best as I can tell, Centerwell (Humana) is willing to pay $50 million for essentially taking over the 55 thousand Villages Health patients. That is essentially the only asset they will be purchasing, since there won’t be any tangible assets remaining after the creditors bankruptcy claims. My guess is that Humana would back out in a heartbeat if the bankruptcy court attaches any of TVH’s unsettled liabilities to the sale. Another concern would be if Florida Blue’s objection is honored by the bankruptcy court, which would be to void the assignability of their MA contracts if TVH does not make good on the over billing associated with their contracts. Humana must believe that after shelling out $50 million upfront, they can generate enough future profit providing health care to TVH’s 55 thousand patients, using CMS compliant billing, to meet their hurdle internal rate of return. Humana obviously believes they can operate more cost efficiently than TVH, or they wouldn’t want to take on the acquisition risk.

According to a small article on the front page of the newspaper, TVH has accepted Centerwell’s offer pending approval by the bankruptcy court. The court is expected to make a ruling today.

My logic is at odds with yours. We're talking about $300M + in OVERCHARGES above what was properly reimbursed. So, TVH's revenue has a layer of income from proper reimbursements and a layer of income from improper billings.

Shouldn't the proper reimbursements have been sufficient to cover the company's operating expenses? If not, the business has obvious financial problems and I really don't think that's the case. Generating additional income from improper billings wouldn't increase the operational expenses substantially other than maybe hiring a couple more coders and accountants. Could be its expansion plans were unknowingly ramped up because of overall income and the money went there???

Admittedly, the QAnon in me is still curious to eventually see where that extra revenue went. The filings stated some went to a partner to pay down a line of credit. There might be some issues there if they determine it was an extra-ordinary or accelerated paydown and the timing coincides with the startup of the billing issues.

The Villages Health Bankruptcy is heating up. Today Sept 9 2025 I received 4 emails of changes in the case between 9AM and 11AM.
It's hard to follow all the little and important changes that were proposed. A word dropped here and a word inserted there but the paragraph below seem to have been removed from the proposed court order.

(e) At least eighty-five (85%) of all the Clinicians offered employment pursuant to Section 12.09(a) shall have accepted an offer of employment and delivered to the Buyer an executed Employment Agreement (such Clinicians, “Accepted Clinicians”)
(provided that Buyer may not delay the Closing based on a failure of the foregoing condition to be satisfied ifBuyer has failed to comply in any material respect with its obligations to make offers of employment to Clinicians under Section 12.09(a));


Does that mean the number of Clinicians is below 85% in the new business?

Unfortunately, your "logic" is flawed. They submitted what they believed was proper billing. They did not submit "proper billing + an overcharge". They received reimbursement for that billing, believing that was what they were due, spent whatever they spent, and had a net ZERO on the books at the end of the year. NO slush fund. NO money in a drawer. Now CMS comes along and states "we paid you too much" based on a difference of opinion in documentation guidelines. So now they're in bankruptcy court.

The problem would be, and while this is unlikely, a whole bunch of misinformed people have jumped on this bandwagon: If the billing was intentionally out of compliance, AND cash distributions were made to the shareholders, that would be fraud. But like I stated, highly unlikely

:bigbow:

Seemingly triggered by auditors who had stong motivation to drive down the cost of the acquisition(?)