The Federal Trade Commission (FTC) has sued a substance use disorder (SUD) treatment provider for posing as other providers to get increased business. Florida-based Evoke Wellness allegedly used deceptive Google search ads that appeared to represent other SUD providers, using its competitors’ names as keywords and displaying ads in a way that impersonated other clinics, […]
State Medicaid programs are federally required to cover applied behavior analysis (ABA) services for children with autism. In 2020, the state of Indiana’s fee-for-service Medicaid payments totaled $101.8 million, the second highest in the U.S. An audit completed by the Office of Inspector General (OIG) for the United States Department of Health and Human Services […]
More allegations about Acadia Healthcare (Nasdaq: ACHC) have surfaced in the press, this time reporting sexual assault at one of the company’s behavioral health hospitals. A male patient at Acadia-owned Options Behavioral Health Hospital raped another patient with severe mental illness, according to reporting by Mirror Indy. A nurse had reported to higher-ups that the […]
Bad news at Acadia Healthcare (Nasdaq: ACHC) has translated into a real financial impact. The behavioral health behemoth experienced lower patient volume growth than expected in October, which company leadership attributed to bad press in its Q3 earnings call. Acadia expects the negative impact to be temporary, according to Heather Dixon, Acadia’s chief financial officer. […]
A Florida federal court ruling issued last month could lead to a “massive sea change” in what lawsuits can be brought against behavioral health companies. That is the interpretation of Gregory Jones, a principal at the law firm Polsinelli’s Los Angeles office, who represents health care companies, including in False Claims Act (FCA) cases. FCA […]
Youth behavioral health residential treatment facilities could face more scrutiny following additional public pressure by a powerful federal lawmaker. On Wednesday, Senate Finance Committee Chair Ron Wyden (D-Oregon) publicly called on the U.S. Department of Justice (DOJ) to investigate four major behavioral health providers to determine if their youth residential treatment programs committed Medicaid fraud. […]
Behavioral health care giant Acadia Healthcare (Nasdaq: ACHC) will pay $19.85 million to the U.S. and several states’ governments to resolve allegations that it knowingly billed for medically unnecessary behavioral health services and endangered patients. The U.S. Department of Justice (DOJ) alleged that Acadia falsely billed Medicare, Medicaid and TRICARE for inpatient behavioral health services […]
Multiple autism therapy centers have been connected to a $250 million federal fraud case. A federal child nutrition program enacted by the state of Minnesota was found to have been abused in 2022, with more than $240 million in federal child nutrition program funds being stolen for personal gain. New reporting by the Minnesota Reformer […]
Four substance use disorder (SUD) treatment facilities owned by Crossroads Treatment Centers have allegedly knowingly submitted false and fraudulent claims to Medicaid from 2016 to mid-2023. The company is now set to pay $863,934 in a civil settlement with the U.S. and the Commonwealth of Virginia. “Submitting false claims to Medicaid undermines the integrity of […]
The arrests of Done Global executives could not have come at a worse time for the industry. Granted, there is never a good time for such an event. It just so happens that, right now, the arrests of executives of the heavily scrutinized digital ADHD treatment provider could play heavily in how several unresolved industry […]
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