Franklin healthcare company allegedly violated federal, state laws

Acadia Healthcare Company, Inc., a Delaware corporation with its principal place of business in Franklin, has agreed to pay more than $19 million to resolve allegations that it violated the federal False Claims Act and numerous state regulations.

According to the U.S. Department of Justice, the healthcare company, which owns and operates inpatient behavioral health facilities throughout the United States, allegedly violated federal and state statutes by “knowingly billing for medically unnecessary inpatient behavioral health services or for services that did not meet federal and state regulations” between 2014 and 2017.

Per the settlement agreement, Acadia will now pay $16,663,918 to the United States to resolve allegedly false Medicare, Medicaid and TRICARE billings. Acadia will also pay an additional $3,186,082 to Florida, Georgia, Michigan and Nevada to resolve its state law claims against Acadia.  

“This settlement demonstrates the Justice Department’s commitment to ensuring that federal healthcare programs pay only for services that are needed and properly provided,” said Brian M. Boynton, principal deputy Assistant Attorney General and head of the Justice Department’s Civil Division. “It is particularly important that health care providers satisfy these requirements when providing services to a vulnerable patient population, such as residents of an inpatient behavioral health facility.”

“Medical providers who participate in federally funded healthcare programs must follow the law when billing Medicare, Medicaid and TRICARE,” Tamala E. Miles, special agent in charge of the Department of Health and human services Office of Inspector General, said in a news release.

“This settlement illustrates HHS-OIG’s commitment to protecting the integrity of these taxpayer-funded programs and the well-being of enrollees seeking treatment. Working closely with the United States Attorney’s Office and other law enforcement partners, we will continue to thoroughly investigate such fraudulent billing schemes.”

The settlement comes in part after the cooperation of three whistleblowers who will now be paid more than $3 million from that federal settlement.