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.