Acadia Healthcare Agrees to $17 Million Settlement Regarding Fraudulent Medicaid Claims

Following allegations of fraudulent Medicaid claims, Acadia Healthcare has agreed to pay a $17 million settlement, according to a recent press release by the Department of Justice.

CRC Health operates its subsidiary, Acadia Healthcare, located in Tennessee with treatment centers in West Virginia. The treatment centers are certified to perform basic laboratory testing involving blood and urine. However, the settlement alleges that between 2012 and 2018, the treatment centers sent urine and blood samples to a San Diego laboratory for more complex testing. Then, the West Virginia based treatment centers billed Medicaid for the testing performed.

Acadia Healthcare submitted the claims through the Medicaid program in their area and received reimbursement fees for the tests. However, the San Diego laboratory was actually the center performing the tests and charged Acadia for their services. The Medicaid reimbursements were higher than the charges of the San Diego laboratory, resulting in Acadia Healthcare gaining around $8.5 million in the Medicaid scheme.

U.S. Attorney Mike Stuart commented on the case in a recent press release stating, “In this case, every dime in false billings was doubled for a total settlement that represents twice the harm caused,”. He added, “This is a strong message and a massive penalty. The message is clear — if you are cheating the system and we find you, you’ll not only pay for the damage done but far more. This is a message of deterrence to other would-be fraudsters.”.

To learn more about this case or other instances of Medicaid fraud, visit the Jeff Newman Law Whistleblower Help Center and blog!