Summit BHC New Jersey, LLC, operating under the name Seabrook, a drug and alcohol rehabilitation center in Bridgeton, New Jersey, has agreed to a $19.75 million settlement over allegations of violating the federal False Claims Act. U.S. Attorney Alina Habba announced the agreement, stating that Seabrook improperly billed the Veterans Health Administration's Community Care Program and New Jersey's Medicaid program for services for which it was not licensed or contracted.
The United States alleged that from January 1, 2022, to December 31, 2024, Seabrook provided unlicensed services, concealed these from state inspectors, and failed to employ adequately credentialed caregivers. "Today’s resolution demonstrates once again this Office’s commitment to ensure that America’s veterans receive the care they deserve and for which the government has paid," said U.S. Attorney Alina Habba.
The settlement arises from a qui tam action under the False Claims Act brought by a former Seabrook employee, who will receive approximately $3.56 million of the recovery. Seabrook cooperated in the investigation, which involved the U.S. Attorney’s Office for the District of New Jersey and the Offices of Inspectors General for the Department of Veterans Affairs and the Department of Health and Human Services.
Christopher Algieri, Special Agent in Charge with the Department of Veterans Affairs Office of Inspector General, emphasized the importance of providers being licensed and adhering to state and federal law when billing the VA. Naomi Gruchacz from the U.S. Department of Health and Human Services Office of Inspector General stated the agency’s commitment to pursuing those who exploit government health programs.
Assistant U.S. Attorney Paul W. Kaufman of the Health Care Fraud Unit was involved in handling the case, captioned United States ex rel. Coulter and the State of New Jersey v. Seabrook House, Inc., et al.
While the settlement resolves allegations, there has been no determination of liability. The matter underlines the government's focus on addressing health care fraud, and tips or complaints can be reported to the Department of Health and Human Services.
Counsel for Seabrook were Richard Westling of Epstein Becker Green, P.C., and Matthew Curley of Bass, Berry, & Sims, PLC. Counsel for the relator Jennifer Coulter were Ross Begelman and Marc Orlow of Javerbaum Wurgaft Hicks Kahn Wikstrom & Sinins, P.C.