Michigan Attorney General Dana Nessel announced a settlement involving Acadia Healthcare Company over allegations of false claims to government healthcare programs, including Medicare and Medicaid. The agreement requires Acadia, based in Franklin, Tennessee, to pay $19.85 million plus interest to several states and the federal government. Michigan will receive $412,504.84 for Medicaid restitution.
Nessel emphasized the importance of protecting Medicare and Medicaid from exploitation: “Medicare and Medicaid are essential programs that exist to assist those who need help securing health care,” she stated. “When these systems are exploited, my Department will work with the federal government and other attorneys general to protect taxpayers and the integrity of these health care programs.”
The settlement addresses accusations against multiple Acadia facilities across four states, including Harbor Oaks Hospital in New Baltimore, Michigan; Park Royal Hospital in Ft. Myers, Florida; North Tampa Behavioral Health in Wesley Chapel, Florida; Lakeview Behavioral Health in Norcross, Georgia; Riverwoods Behavioral Health System in Riverwoods, Georgia; and Seven Hills Hospital in Henderson, Nevada.
Allegations include admitting patients not eligible for inpatient treatment, failing to discharge patients no longer needing care, excessive inpatient stays, inadequate staffing leading to patient harm such as assaults or suicides, and failure to comply with regulations regarding treatment plans and therapy.
These issues reportedly occurred between January 1 and December 31 of 2017 at Harbor Oaks Hospital in Michigan.
The investigation stemmed from whistleblower lawsuits filed in April 2017 in Tennessee and Florida district courts. A National Association of Medicaid Fraud Control Units (NAMFCU) Team assisted with negotiations on behalf of involved states.
Michigan's Attorney General’s Health Care Fraud Division (HCFD), which is federally certified as a Medicaid Fraud Control Unit receiving significant funding from the U.S. Department of Health and Human Services along with state funds, managed this case for Michigan.