Date: September 26, 2024
The New York Times, and other publications, reported on a recent $20 million settlement resolving allegations that Acadia Healthcare, a chain of psychiatric hospitals, defrauded government insurance programs. TELG clients Brian Snyder and Franka Tirado will get a portion of the settlement for their role in blowing the whistle on the Florida hospital where they worked. Mr. Snyder and Ms. Tirado were represented by TELG principal Janel Quinn.
Quoteworthy:
“My only hope is that this investigation and settlement will stop any future harms. Psychiatric patients arrive in a fragile and deeply vulnerable state, and they deserve compassionate care — not to be detained for maximum dollars.”
Janel Quinn
[EXCERPT]
Acadia Hospitals Reach $20 Million Settlement With Justice Dept.
Acadia Healthcare, one of the country’s largest for-profit chains of psychiatric hospitals, has agreed to pay nearly $20 million to settle a federal investigation accusing the company of defrauding taxpayer-funded health insurance programs like Medicare and Medicaid, the Justice Department said on Thursday.
Prosecutors said that Acadia had held patients for longer than necessary and admitted people who didn’t need to be there. Once patients entered its facilities, the government said, Acadia failed to provide therapy and kept staffing dangerously low, leading to assaults and suicides.
[…]
Another whistle-blower, Brian Snyder, who was an executive at Park Royal, said in an interview that the hospital systematically worked to hold patients with insurance as long as possible.
Mr. Snyder said the problems were widespread at Acadia. “It’s not by accident or a few bad apples,” he said, “it’s by design.”
>> View full story on The New York Times
[OFFICIAL ANNOUNCEMENT]
Acadia Healthcare Company Inc. to Pay $19.85M to Settle Allegations Relating to Medically Unnecessary Inpatient Behavioral Health Services
From the U.S. Department of Justice (September 26, 2024)
Acadia Healthcare Company Inc., a Delaware corporation with its principal place of business in Franklin, Tennessee, has agreed to resolve allegations that it violated the False Claims Act and related state statutes by knowingly billing for medically unnecessary inpatient behavioral health services or for services that did not meet federal and state regulations. Acadia Healthcare Company owns and operates inpatient behavioral health facilities throughout the United States, including The Pavilion at HealthPark LLC, doing business as Park Royal Hospital in Ft. Myers, Florida; Riverwoods Behavioral Health LLC, doing business as Lakeview Behavioral Health in Norcross, Georgia, and as Riverwoods Behavioral Health System in Riverdale, Georgia; Ten Broeck Tampa LLC, doing business as North Tampa Behavioral Health in Wesley Chapel, Florida; PHC of Michigan LLC, doing business as Harbor Oaks Hospital in New Baltimore, Michigan; and Seven Hills Hospital LLC, doing business as Seven Hills Hospital in Henderson, Nevada (collectively, Acadia).
» View press release on Justice.gov
[ADDITIONAL COVERAGE]
Acadia Healthcare Company pays settlement after whistleblower investigation
From KTNV Las Vegas (October 9, 2024)
HENDERSON (KTNV) — Acadia Healthcare Company Inc., which owns and operates Seven Hills Hospital in Henderson, has agreed to pay a settlement.
[…]
“My only hope is that this investigation and settlement will stop any future harms,” said Janel Quinn, a principal of The Employment Law Group, who represents two of the whistleblowers. “Psychiatric patients arrive in a fragile and deeply vulnerable state, and they deserve compassionate care — not to be detained for maximum dollars.”
Under the settlement agreement, Acadia will pay $16,663,918 to the U.S. to resolve its liability under the False Claims Act for false billings.
The company will also pay an additional $3,186,082 to Florida, Georgia, Michigan, and Nevada to resolve their state law claims against Acadia.
Acadia shares plummet on news of DOJ fine
From Nashville Post (September 27, 2024)
Acadia Healthcare has agreed to pay approximately $19.85 million to settle allegations that it violated the federal False Claims Act and related state statutes — with the stock of the Franklin-based company losing roughly 27 percent of value on the heels of the news.
In early morning trading, Acadia shares (ticker: ACHC) were priced at $55.66, down $20 per share.
According to a release from the U.S. Department of Justice, Acadia — which provides mental health treatment services — was charged with knowingly having billed either for medically unnecessary inpatient behavioral health services or for services that did not meet federal and state regulations.
» View full story on Nashville Post
Pasco, Lee hospitals named in $20M federal settlement
From the Business Observer (September 26, 2024)
Acadia Healthcare, a Tennessee medical group with behavioral hospitals in Fort Myers and Wesley Chapel, has agreed to pay $19.85 million to settle allegations that it “knowingly” billed for unnecessary medical services and services not meeting federal and state regulations at hospitals nationwide.
The settlement with the medical organization was announced Thursday by the United States Department of Justice. DOJ says Acadia will pay $16.6 million of the fine to the federal government and $3.18 million to Florida, Georgia, Michigan and Nevada to resolve state claims.
Among the allegations are that Acadia admitted people not eligible for inpatient treatment, failed to release people no longer in need of care and did not provide adequate supervision leading to violence and suicide.
» View full story on the Business Observer
Acadia Healthcare $19.85M Unnecessary Inpatient Settlement
From Lawyer Monthly (September 27, 2024)
Acadia Healthcare Company Inc., a corporation established in Delaware and headquartered in Franklin, Tennessee, has consented to settle claims asserting that it breached the False Claims Act and associated state laws by willfully submitting bills for inpatient behavioral health services that were not medically necessary or for services that failed to comply with federal and state regulations.
The United States asserted that from 2014 to 2017, Acadia intentionally submitted fraudulent claims for reimbursement to Medicare, Medicaid, and TRICARE for inpatient behavioral health services that were neither reasonable nor medically necessary.
» View full story on Lawyer Monthly
Former Acadia Employees Received Reward for Blowing the Whistle on Healthcare Fraud
From The National Law Review (September 26, 2024)
The United States Department of Justice settled a False Claims Act qui tam whistleblower lawsuit against inpatient behavioral health facilities operator Acadia Healthcare Company, Inc. Under the terms of the settlement, the operator paid almost $20 million to the United States and the States of Florida, Georgia, Michigan, and Nevada. The relators, or whistleblowers, who filed suit in 2017, received a reward of 19% of the government’s recovery of misspent Medicare, TRICARE, and Medicaid funds.
