Recovery Centers of America (RCA) will pay $2 million to resolve federal allegations that it violated the Controlled Substances Act and the False Claims Act.

The King of Prussia, Pennsylvania-based substance use disorder treatment provider came under scrutiny following audits from the Drug Enforcement Administration (DEA) that revealed the company had purportedly dispensed controlled substances unlawfully at facilities in Pennsylvania and Maryland between 2019 and 2024.

The DEA audits also allege that information on the dispensing of controlled substances was missing from company records and that RCA failed to adhere to record-keeping requirements outlined in the Controlled Substances Act.

In addition, federal officials claim that between 2017 and 2019, RCA engaged in fraudulent billing practices, failed to provide care to Medicaid beneficiaries and neglected to document requisite treatment services.

While RCA executives have agreed to settle the allegations with the U.S. Attorney’s Office for the Eastern District of Pennsylvania, the company asserts that there was no liability or wrongdoing.

“The agreement addresses historical allegations related to services at RCA’s Danvers and Westminster locations, as well as DEA record keeping and other regulatory compliance matters at its Devon and Capital Region facilities,” a spokesperson for Recovery Centers of America told Behavioral Health Business. “RCA chose to enter this settlement to avoid the costs and distraction of protracted litigation.”

The initial investigation was brought to the U.S. Attorney’s Office by a whistleblower who was a former outcomes supervisor at RCA’s corporate headquarters. As part of the settlement, the unnamed whistleblower will receive $230,000 from the settlement amount.

This is not the first time RCA has faced legal action. In 2020, the company faced a civil lawsuit over allegations of negligence and wrongful death after a man who was admitted to a facility in Chester County, Pennsylvania, overdosed.

Prior to that, admissions were halted at the company’s Danvers location in Massachusetts over concerns about patient safety following two patient deaths.

In the years since, the company has engaged in a series of acquisition activities. Last year, the Recovery Centers of America also announced a restructuring across its leadership team to align more closely with regional priorities. 

Now that its latest legal allegations are settled, the company will prioritize “providing high-quality, compassionate care and helping individuals and families achieve lasting recovery from addiction,” the RCA spokesperson said.