Allpro Staffnet Limited-Liability Company d/b/a Allpro Homecare Solutions v. United States Department of Veterans Affairs

CourtDistrict Court, M.D. Tennessee
DecidedMarch 5, 2026
Docket3:25-cv-01483
StatusUnknown

This text of Allpro Staffnet Limited-Liability Company d/b/a Allpro Homecare Solutions v. United States Department of Veterans Affairs (Allpro Staffnet Limited-Liability Company d/b/a Allpro Homecare Solutions v. United States Department of Veterans Affairs) is published on Counsel Stack Legal Research, covering District Court, M.D. Tennessee primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Allpro Staffnet Limited-Liability Company d/b/a Allpro Homecare Solutions v. United States Department of Veterans Affairs, (M.D. Tenn. 2026).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE MIDDLE DISTRICT OF TENNESSEE NASHVILLE DIVISION

ALLPRO STAFFNET LIMITED- ) LIABILITY COMPANY d/b/a ALLPRO ) HOMECARE SOLUTIONS ) ) Plaintiff, ) NO. 3:25-cv-01483 ) v. ) JUDGE CAMPBELL ) UNITED STATES DEPARTMENT OF ) VETERANS AFFAIRS, ) ) Defendant. )

MEMORANDUM

Plaintiff Allpro Staffnet LLC d/b/a Allpro Homecare Solutions (“Allpro”) is a healthcare provider that provides in-home health services to veterans through the Community Care Program administered by the United States Department of Veterans Affairs (the “VA”). Without notice or explanation, in November 2025, the VA placed Allpro on an “administrative hold” pursuant to which it stopped referring new veteran-clients to Allpro, stopped renewing care authorizations for existing veteran-clients, and transferred some existing clients to new providers. On December 23, 2025, Allpro initiated this action by filing a Verified Complaint bringing claims under the Administrative Procedure Act (“APA”), 5 U.S.C. § 551, et seq., and for violation of Due Process. (Doc. No. 1). Pending before the Court are Allpro’s Motion for Temporary Restraining Order (Doc. No. 6) and the VA’s motion to dismiss for lack of subject matter jurisdiction (Doc. No. 32). For the reasons stated herein, the VA’s motion to dismiss is GRANTED and Allpro’s Motion for Temporary Restraining Order is DENIED. I. BACKGROUND Allpro provides in-home health services to veterans in 32 states through the Community Care Program administered by the VA.1 (¶ 2). The Community Care Program allows veterans to receive care in the community, including at-home care, rather than the VA system if certain requirements are met and the VA authorizes community care. (¶¶ 26, 27). If a veteran is authorized

community care, the VA assigns a referral to a provider such as Allpro. Authorizations are typically limited to a specific period of time and for specific services. (¶ 40). Authorizations must be renewed when the episode of care expires. (Id.). The VA is responsible for care authorizations and renewals, and for referring or not referring veterans to a specific care provider in the first instance and with respect to renewals. (¶¶ 38-39). Although care providers like Allpro receive referrals directly from the VA, the VA does not contract with care providers directly; it does so through its contracts with third-party administrators. The VA contracts with two third-party administrators – Optum Public Sector Solutions, Inc. (“Optum”) and TriWest Healthcare Alliance Corporation (“TriWest”) – who build

and manage nationwide networks of care providers, administer claims, and perform related program operations. (¶¶ 33-35). Care providers contract with a TPA, receive referrals from the VA, and then submit their claims for payment to the TPA. (¶¶ 36, 46). To participate in a TPA’s care provider network, care providers must maintain applicable state licensure, national provider identifiers, acceptable sanction histories, and quality standards, and they must comply with program rules and policies issued by the VA and the TPAs. (¶ 42).

1 The Community Care Program was established in 2020. Prior to 2020, the VA provided home care to veterans through other programs. Allpro has provided home care to veterans since 2009, and has been a care provider through Community Care Program since the program’s inception in 2020. (¶¶ 48-54). At the time of the filing of the Verified Complaint, Allpro provided services to approximately 2,000 veterans, delivering in excess of 30,000 hours of care per week, under 43 VA Medical Centers and one VA Clinic across 32 states. (¶¶ 56, 103). In some of the areas where Allpro provides service, it is the

only home care provider. (¶ 60). On November 19, 2025, Optum informed Allpro that its participation in the VA Community Care Network was being placed “on hold” in accordance with a determination made by the VA CCN Provider Network Department and that, pursuant to the hold, Allpro would not receive new referrals. (¶ 84). Allpro also learned that the VA was transferring existing clients to other care providers. (¶¶ 108-112). Initially, the VA provided no information directly to Allpro about the hold or the reasons for the hold. Not until after Allpro’s attorneys sent a demand letter to the VA on December 17, 2025, did the VA provide a limited explanation for the hold. The VA stated:

We have received dozens of complaints that were submitted directly to the U.S. Department of Veterans Affairs (VA), as well as to our Third-Party Administrators (TPAs). These complaints implicate potential issues involving Veteran safety, as well as potential waste of taxpayer dollars. Due to these concerns, VA placed you on an administrative hold. We are in the process of initiating the Potential Quality Issue (PQI) process available to VA under our contracts with the TPAs. During this process, the TPAs will look into the concerns raised and make recommendations for any potential action that VA may want to consider. While this process plays out, VA will not issue any new referrals to Allpro. Once VA has submitted the PQI, you may receive notification from the TPAs. You can reach out to the appropriate TPAs to inquire further about the PQI process. (Doc. No. 6-4, at PageID# 116). The Potential Quality Issue (“PQI”) process referenced in the letter, is described in the contracts between the TPAs and the VA. (See Doc. Nos. 19-1, 19-2 (excerpts from VA contracts with Optum and TriWest).2 Pursuant to these contracts, the TPAs are required to “identify, track, trend, and report interventions to resolve any Potential Quality Issues (PQI).” (Doc. No. 19-1 at PageID# 238; Doc. No. 19-2 at PageID# 253-54). The TPA contracts provide that most PQI’s must be completed within 90-180 days from the date of identification.3 (Id.). The PQI process described in the contracts does not contain any reference to administrative

hold on care providers during the PQI process or otherwise. The VA submitted PQIs to each TPA relating to Allpro on December 23, 2025, the day after Allpro initiated this lawsuit. (Palmer Decl., Doc. No. 19, ¶ 17). In the Verified Complaint, Allpro complains that the VA did not provide notice of the hold until almost a month after it had been instituted, and did not provide any information about the decision-making process, how long the hold would be in place, or any process to challenge it, and the limited information the VA eventually provided was insufficient to allow Allpro to formulate a response. (Doc. No. 1, ¶¶ 5, 84-85, 92, 98-102). Without new referrals or at least renewals of existing referrals, Allpro claims it will run out of existing clients and will operate at a loss by the end of March 2026. (Doc. No. 1,

¶ 104).

2 In its response, the VA describes these contracts as “contracts between Plaintiff and VA’s third party administrators, Optum and TriWest.” (See Doc. No. 18 at 6). But this appears to be a mistake. Andrew Palmer, the VA’s Program Management Officer, states in his Declaration, that the referenced contracts are actually between the VA and Optum and TriWest. (see Doc. No. 19, ¶¶ 12, 13; Doc. No. 19-1 (excerpts from contract between VA and Optum); Doc. No. 19-2 (excerpts from contract between VA and TriWest)). 3 The VA’s contracts with both TPAs require the TPAs to process 95% of PQIs within 90 days and 99% within 180 days. (Doc. No. 19-1 at PageID# 238-39). The Optum contract allows “PQI/IQI cases requiring Corrective Action Plans (CAPs) [to] be completed outside of the 90/180- day limit, if required.” (Id.). The TriWest contract does not include that provision. (Doc. No. 19-2 at PageID # 253-54). The Verified Complaint asserts claims under the APA and for violation of Due Process. (Doc. No. 1).

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Allpro Staffnet Limited-Liability Company d/b/a Allpro Homecare Solutions v. United States Department of Veterans Affairs, Counsel Stack Legal Research, https://law.counselstack.com/opinion/allpro-staffnet-limited-liability-company-dba-allpro-homecare-solutions-tnmd-2026.