New York City-based health insurer, EmblemHealth, is being sued by the American Psychiatric Association (APA) and the New York State Psychiatric Association for maintaining a “ghost network” of mental health providers. Court documents allege that EmblemHealth engaged in false advertising, misrepresenting its network size and quality and as a result, harming plan members and mental […]
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 […]
Mindpath Health has agreed to pay $1.9 million to settle a whistleblower case alleging the company fraudulently billed for psychotherapy and medication management services, according to the U.S. Attorney’s Office in the Eastern District of North Carolina. The case alleges that between 2018 and 2020, the behavioral health provider submitted Medicare claims without the required […]
Acadia Healthcare (Nasdaq: ACHC) has agreed to pay $179 million to settle a class action lawsuit that alleged securities fraud. Approximately $30 million of the settlement funds will be derived from insurance proceeds; the remainder will be funded from cash on hand and existing credit lines. The company will report the expense as part of […]
Miramar, Florida-based mental health and addiction treatment provider Evoke Wellness has settled a lawsuit from the Federal Trade Commission over its advertising practices for $1.9 million. Initially, a $7 million civil penalty was imposed on the company, but it was suspended due to the company’s “inability to pay the full amount,” according to an FTC […]
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 […]
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