Medicaid fraud cost states billions of dollars every year, diverting funds that could otherwise be used for legitimate health care services. West Virginia-based Acadia Healthcare, along with subsidiary CRC Health, has agreed to dole out $17 million to settle accusations of fraud, representing the largest fraud-related settlement in the history of the state, according to a settlement agreement released this week. Entry Level Employee. According to Crain's: there's been a flood of private-equity investment into the $35 billion-a-year addiction treatment industry. 32, 4 Feb., 2019; https://www.jointcommission.org/assets/1/6/Accr-Tips-Email-Feb-2014.pdf. Naturally, investment firms jumped on the opportunity. Acadia, acting through its subsidiary, CRC Health, L.L.C. Fix the multitude of issues with the current facilities and get a solid foundation before trying to build higher. 30% of Acadias revenue comes from the UK, but problems exist, such as: The shortage of nursing staff in the UK is cause for alarm bells. Laboratories that perform non-waived tests are required to have a significantly higher level of certification than the certifications held by the Acadia treatment centers. ) or https:// means youve safely connected to the .gov website. 7, No. In a June 20, 2018, Glassdoor online review entitled "Used to Be Better, Now It's Just About Acquiring as Much as Possible," one employee in the corporate office wrote the following: People you work with; Corporate office is in a nice area. CHARLESTON, W.Va. United States Attorney Mike Stuart, along with Special Agent in Charge Maureen R. Dixon, United States Department of Health and Human Services Office of Inspector General (HHS-OIG), Acting Assistant Special Agent in Charge Justin Schoeman, Drug Enforcement Administration (DEA), Cabinet Secretary Bill J. Crouch, West Virginia Department of Health and Human Resources, and Director Mike Malone, West Virginia Medicaid Fraud Control Unit (MFCU), announced that his office has settled healthcare fraud claims against Acadia Healthcare Company, Inc. (Acadia). Source: MarketBeat. 6100 Tower . Seeing that the 1997 law had no effect on ensuring people could get the mental health and substance use care they needed, and desperate to induce actual change, Senator Ted Kennedy and his son, Patrick, were key in adding the Mental Health Parity and Addiction Equity Act of 2008 (MHPAEA) as a rider to the Troubled Asset Relief Program (TARP). Assistant U.S. In the claims for reimbursement submitted to Medicaid, Acadias treatment centers represented that they had performed the moderate and/or high complexity laboratory services. The strike force works with law enforcement agencies including State Medicaid Fraud Control Units. However, when they outperformed at Q4 2017, Waud dumped stock after the release of earnings in February. The settlement represents the largest healthcare fraud settlement in the history of West Virginia and is twice the actual loss from the scheme. Acadia Healthcare came under further scrutiny in Oklahoma where it owns Rolling Hills Hospital. In August 2018, the Department of Justice announced the creation of a new regional Medicare fraud strike force covering Newark, New Jersey and Philadelphia, Pennsylvania, adding to similar such strike forces in Miami, Los Angeles, Detroit, Chicago and other major metropolitan areas. Source: The Braff Group. Fraudulent billing by these Acadia/CRC drug treatment clinics, as contended by the government, limits the States ability to provide desperately needed addiction treatment services, Maureen Dixon, Special Agent in Charge of the Office of Inspector General of the U.S. Department of Health and Human Services Region including West Virginia, said in the release. Acadia is a leading provider of behavioral healthcare services. Medicare/Medicaid contract risk. from The University of Oklahoma in Norman, Oklahoma, where he studied Economics. I. Only Channel 2 Action News was there when detectives pulled evidence and questioned employees.. Florida State Attorney Dave Aronberg said: This is an entire industry that's been corrupted by easy money. Officials brought their own truck and van for all the evidence they expected to find. Seasonality. Acadia Healthcare operates 10,200 beds spanning 230 facilities in 41 American states and territories. 16). In June 2017, four employees were charged with manslaughter after a 5-year-old boy died. Both he and his partner were convicted of financial crimes as well. KARK reported that: Ascent Children's Health Services CEO Dan Sullivan admits some employees didn't follow correct protocol and were fired. 2. Acadia is 98% owned by institutions. We will continue working with the U.S. Attorney and other law enforcement partners to protect government health programs, taxpayers, and importantly people who depend on these funds for vitally needed treatment., The West Virginia Department of Health and Human Resources, through its Medicaid Fraud Control Unit, continues to protect the integrity of healthcare programs and the citizens of West Virginia, said Bill J. Crouch, Cabinet Secretary of the West Virginia Department of Health and Human Resources. OAKLAND - California Attorney General Rob Bonta today conditionally approved the sale of Adventist Health Vallejo (Adventist Vallejo), an acute psychiatric inpatient hospital, to Acadia Healthcare Company Inc. (Acadia).The Attorney General's conditions, upon which the sale is contingent, address the risk of price increases in the limited market for acute psychiatric services in Northern . Old men to stumble into Moncton. Lastly, contact was made with Acadia Healthcare and Waud Capital Partners via telephone and email. This is only attained by reducing the quality of care. From January 2012 through July 2018, the lawsuit alleged the Acadia centers used a California lab to conduct urine and blood analysis, then billed Medicaid directly for the services paying the San Diego lab out-of-pocket for its services. The settlement was reached with the United States through the Department of Justice, the Department of Health and Human Services and the state of West Virginia via its Department of Health and Human Resources and Medicaid Fraud Control Unit. All they had to do was limit the number of provider visits or the number of days they would cover for mental health patients. Though that law had wonderful intentions, it was far too narrow; it included no provisions for substance use or dependency issues. The company has seen a mass exodus of value, about a third of its market cap, since Littles first report on the behavioral healthcare company. The penalty totals are adjusted to account for the fact that the . She had bruising all over, Tipton told Thomas. . This corporation is taking advantage of the most vulnerable people in our. I am proud of the work of my office and that of our partners to ensure the end of this multi-million dollar scheme. Again, the leadership has, for the most part, cashed in. 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. Active contributors also get free access to the SA PRO archive. You must be a. Medicare/Medicaid payments are critical for these predominantly high-debt firms to meet rising interest expenses. He recently acquired an ownership stake in the Nashville Predators, according to The Tennessean. If you have information that would assist KSF in its investigation, or have been a long-term holder of Acadia shares and would like to discuss your legal rights, you may, without obligation or. While at Crestview, Penn also co-founded the Shatter Our Silence Initiative, to combat teen suicide in Northern Illinois.Penn loves to spend time with his nieces, Sacra and Emory (both 3) and nephew, Greer (1), as well as fishing in Kona, HI for Blue Marlin. ACHC expects the tax rate to be 25-26%. Learn about careers at Cox Media Group. Editor's note: Seeking Alpha is proud to welcome Penn Little as a new contributor. Ask a Question. I have no business relationship with any company whose stock is mentioned in this article. A large non-profit acquired the firm in 2016, and it still thrives today, despite Penn moving on to his passion: investing.Now, a decade later, Penn has exited three start-ups. The organization will pay $17 million to the United States and $2.2 milion to the state of West Virginia. Acadia owns seven treatment centers in West Virginia, in Beckley, Charleston, Clarksburg, Huntington, Parkersburg, Wheeling and Williamson. These treatment centers are located in Charleston, Huntington, Parkersburg, Beckley, Williamson, Clarksburg, and Wheeling. Waud also has a new house, widely known as Maine's "largest mansion.". The investigation was conducted by HHS-OIG, DEA and MFCU, members of the United States Attorneys Healthcare Fraud Abuse, Recovery and Response Team (ARREST), an innovative approach linking civil and criminal enforcement efforts together in a comprehensive attack on the opioid epidemic and healthcare fraud. The other lawsuit, which involves an unnamed minor, alleges denial of critical emergency medical care, as well as multiple sexual assaults against children. Company has a NEGATIVE tangible net worth. Improving the Patient Financial Experience Throughout the Patient Journey. Investigations by health inspectors from the Centers for Medicare and Medicaid Services revealed over 50 pages of violations ranging from unqualified staff to infection control deficiencies, patient rights, and maintenance issues. System et al v. PSI, Filed 9/21/2009). *Some* good colleagues. 4. The entire industry, which was previously a cash-pay or a charitably-supported field filled with legitimate actors, became a massive gold rush, according to Bloomberg News. Acadia Healthcare is an American provider of behavioral healthcare services. According to an anonymous industry expert trained in both business and medicine, "due to the number of suicides at some of their facilities, Acadia's ability to accept certain patients has been restricted by state-level governments.". Attorneys Alan McGonigal and Jennifer Mankins represented the federal government in the settlement. Deal is largest for health care fraud in West Virginia history, Shugga Hi owner sues for right to buy property eyed for ER, Grading the Predators major trades so far. Acadia was involved in approximately zero of those transactions. Beth Tipton said her mother is a former patient and victim. by making a substantial payment to investors harmed by the fraud perpetrated by defendants. Penn has found a passion in his ability to expeditiously investigate companies as well as piecing together how they all contribute or are affected by multi-faceted macro trends. In this case, every dime in false billings was doubled for a total settlement that represents twice the harm caused. ignoring their complaints, and had poor quality control procedures in place. The Mental Health Watchdog One is located on Medlock Bridge Road and the other is on One Technology Parkway. The Oklahoman also points to the Oklahoma State Department of Health, which licenses hospitals and conducts inspections on behalf of CMS, rarely suspending or revoking hospital licenses.[8]. Earlier this year in California, Christopher Bathum, the owner of a facility, was convicted of multiple sexual assaults of patients. In 2018, improper payments alonewhich include things like payment for non-covered services or for services that were billed but not providedtotaledmore than $40 billion nationally according to the Government Accountability Office. In effect, the three combined laws were a mandate for the $3 trillion insurance industry to pay out unlimited reimbursements for a lifetime disease with no cost-effective solution. The CIA requires CRC and Acadia to maintain a compliance program, implement a risk assessment program, and hire an Independent Review Organization to review Medicaid claims. 27). Share sensitive information only on official, secure websites. 4. 3.9. There has been speculation of a private equity buyout of the company; however, this has not been verified. Acadia would suffer greatly from any changes in the regulatory environment. Source: YCharts. In 2005, Waud Capital Partners, founded by Chicago's Reeve B. Waud created a new behavioral healthcare company called Acadia Healthcare. Acadias treatment centers paid the San Diego Lab directly. Chris Hunter. 27. Oasis had been the subject of five enforcement actions and fined a mere $7,000. As a result of the $17 million settlement, which represents twice the actual loss suffered by Medicaid, both the state and federal programs will be made whole. He has come to enjoy and find a passion for learning and writing about various verticles including energy and transportation.Penn is a proud graduate of Culver Military Academy in Culver, Indiana. [5] UHS in the hot seat: Senator calls for federal probe over patient care concerns at top-performing hospital FierceHealthcare, 25 Apr. But after the act, insurers became required to treat MH/SUD services with parity, meaning they have to provide the exact same coverage for MH/SUD services as they do for medical and surgical benefits. Acadia struggles with severe seasonality in the summer months. Presently, over 70% of the companys top-line is paid to Acadia by the British and American taxpayers, he reported. https://www.acadiahealthcare.com. Prosecutors say that treatment centers frequently illegally waive co-pays and deductibles, telling patients and parents that insurance will cover everything. Ada, OK, Rolling Hills Hospital. Treat employees better before every ounce of talent is gone and working for competitors. Myron already had health problems and used a wheelchair, but he could stand for long enough to get into bed or onto the toilet, she said. As more government dollars pour into behavioral healthcare, government watchdogs are calling for the creation of a regulatory body to investigate fraud in the SUD industry. Please disable your ad-blocker and refresh. As of March 31, 2021, Acadia operated a network of 228 behavioral healthcare facilities with. 32, 4 Feb., 2019, [2] Is the Integrity Gap Widening in Behavioral Health?, Brown Consulting Behavioral Services, 21 July 2017, http://www.danbrownconsulting.com/2017/07/21/integrity-gap-widening-behavioral-health/. Attorney General Sessions has since resigned. Acadia Corporate Headquarters 6100 Tower Circle, Suite 1000 Franklin, TN 37067 Tel: 615-861-6000 Toll Free: 855-526-8228 Fax: 615-261-9685 Additional Information Treatment Overview Populations Overview Programming & Services Careers Available Find Your Treatment Facility Disorders We Treat Last year, the location's top physician since 2012 resigned, citing the decline of the facility under Acadia. An official website of the United States government. However, Acadias West Virginia treatment centers then billed West Virginia Medicaid for the urine and blood testing performed by the San Diego Lab, as though the testing had been performed by the treatment centers. It operates a network of over 225 facilities across the United States and Puerto Rico. Sie knnen Ihre Einstellungen jederzeit ndern, indem Sie auf unseren Websites und Apps auf den Link Datenschutz-Dashboard klicken. Authorities said they are looking into complaints of abuse, over-druggingand fraud at the facility owned by Acadia Healthcare. Those who purchased Acadia Healthcare Company Inc (NASDAQ: ACHC) shares should contact the Shareholders Foundation, Inc. Many users were young adults and children on their parents' insurance plans. Twitter:@JELagasse To ensure this doesnt happen in the future, please enable Javascript and cookies in your browser. Regulators had inadvertently created an environment ripe for investment. Not only government and Joint Commission oversight but also criminal prosecutions over patient restraint and other deaths and sexual abuse of patients are seriously lacking. Additionally, the provisions it did have were woefully ineffective. $11,000. Please. Source: YCharts. The heavy leverage lining the industry artificially inflated valuations beyond 30X EBITDA, spurring many clinicians with a plethora of "modalities" to set up their own shops. Acadia provides behavioral health and addiction services to its patients in a variety of settings, including inpatient psychiatric hospitals, residential treatment centers, outpatient clinics and therapeutic school-based programs.
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