July 7, 2025

The Villages Health Files for Bankruptcy, Owes $361 Million to U.S. Government Over Medicare Billing

1.4 min read| Published On: July 7th, 2025|

By Cindy Peterson

The Villages Health Files for Bankruptcy, Owes $361 Million to U.S. Government Over Medicare Billing

1.4 min read| Published On: July 7th, 2025|

The Villages Health, a popular healthcare provider in one of the nation’s largest retirement communities, has filed for Chapter 11 bankruptcy after announcing it owes the federal government $361 million due to Medicare overpayments.

In bankruptcy court documents filed July 3 in Orlando, the company listed liabilities between $100 million and $500 million, with assets ranging from $50 million to $100 million. Its holdings include eight primary care centers and two specialty care centers located throughout The Villages, where it provides care to more than 55,000 patients.

The filing stems from a major Medicare billing issue the company says it uncovered during an internal review. The error, which the company self-reported in December, resulted in hundreds of millions of dollars in overpayments from the government.

In a letter sent Thursday to patients, Chief Executive Officer Bob Trinh acknowledged the problem, stating The Villages Health has been on the receiving end of “hundreds of millions of dollars in overpayments” through Medicare.

While the bankruptcy process unfolds, The Villages Health has signed an agreement to sell its assets to CenterWell, a healthcare services division of Humana. The company is listed in court records as a “stalking horse bidder,” a term that refers to a baseline offer in a bankruptcy auction.

“This will allow the healthcare system which has been providing amazing care to our patients for all these years, to continue on in the hands of a national healthcare services organization that has the resources and expertise to grow The Villages Health, and to enhance patient care,” CEO Trinh wrote in the letter.

Despite the financial crisis, the company emphasized that care for existing patients would not be disrupted.

“This legal process aims to preserve TVH as a highly effective health care system while putting it in the hands of a large national organization with the resources and expertise to grow and enhance the patient care experience,” he wrote.

The CenterWell purchase still needs court approval, and the company has not disclosed a timeline for the sale’s completion. While the sale is listed as separate from the Medicare case, it is viewed as a crucial step in stabilizing the healthcare provider’s future.

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About the Author: Cindy Peterson

Originally from the small town of Berryville, Arkansas, Cindy has become a multimedia specialist in journalism, photography, videography, and video editing. She has a B.S. in Communications from the University of Central Arkansas and produces Style Magazine's Sports Hub Podcast and the Healthy Living Podcast. She also produces for Beacon College’s Telly Award-winning PBS show, “A World of Difference.” When she isn’t working, Cindy loves traveling the National Parks with her husband , Ryan, and son, David, photographing wildlife.

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