How a troubled Michigan nursing home chain came to an end


How a troubled Michigan nursing home chain came to an end

Mission Point Health Care once operated one of the worst nursing home chains in the country.

Its homes were fined millions of dollars by the federal government for abuse and neglect of vulnerable patients. In many, horrific outcomes and unnecessary suffering were far too common.

The chain came apart this year. The last seven homes to bear the Mission Point name were sold by a court-appointed receiver to investors linked to the Villa nursing home chain at the end of October.

You can read our full coverage of those events here. But here are some key takeaways.

Saddled with debt: By early 2025, eight Mission Point homes owed nearly $5 million in overdue rent. The company had defaulted on $6.8 million in loans and racked up $4.7 million in unpaid state taxes. Federal fines for patient abuse and neglect added millions more to its liabilities. These financial troubles culminated in a court-appointed receivership for eight of its facilities in February.

A history of poor performance: The problems weren't just financial. Mission Point became notorious for poor care, with federal inspectors citing cases of patients developing maggots in wounds, rampant COVID outbreaks, and widespread neglect. One facility in Madison Heights - designated among the worst-performing nursing homes in the country by the federal government - was shut down by the court-appointed receiver in July because it was losing money and seemed unlikely to improve. Its 78 residents were relocated to other homes. As Michigan's long-term care ombudsman Salli Pung put it: "The feedback that we're hearing from residents is that the care they're receiving [in their new facilities] and the food they're being served and the activities are so much better."

Other homes rebranded: In the spring, a dozen Mission Point homes were rebranded as Intersect Healthcare, though it was unclear whether the homes had been sold outright or simply changed management companies. Mission Point Nursing & Physical Rehabilitation of Detroit filed for Chapter 11 bankruptcy and has since rebranded as Lafayette Park Nursing & Rehabilitation Center. Another Mission Point facility in Holly has rebranded as Holly Village Nursing & Rehabilitation Center.

Sale for $10: In October, the last seven Mission Point homes were sold for $10 and assumption of millions in liabilities to an investment group tied to the Villa nursing home chain. Mission Point's website has since gone dark.

Concerns about Villa: Villa, which had ended up with three of the former Mission Point homes, has its own history of poor performance. This summer, Villa agreed to a $4.5 million settlement with federal and state authorities over allegations of billing for "unprovided or grossly substandard care." A recent report revealed Villa's Michigan homes paid $137.45 million to related companies between 2021 and 2023 while reporting only $19.7 million in profit, raising concerns about financial transparency and a practice known as "tunneling."

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