Acadia to pay West Virginia Medicaid $17M over opioid test fraud The Beginning: A Legislative Triple-Threat. 16). Waived laboratory tests are simple tests with a low risk for an incorrect result. 16). A lock ( This settlement is just one example of the great results from our collaboration and hopefully it will have a positive effect on the people of West Virginia, Schoeman added. Acadia is a leading provider of behavioral healthcare services across the United States. Acadia has experienced almost no bed growth in 2018. A lawsuit from one of the victims, Shannon Archer, highlights the conditions of neglect. 2.5. To combat these financial challenges, Acadia has purportedly tried: reputable clinicians and physicians don't want to work with Acadia. 5. A separate claim, filed in 2009, names the same defendants. The Medicaid program is primarily administered by the states, but jointly financed by federal and state funds funds ultimately originating from taxpayers. If any of the above happens, it will likely cause Mizuho (which currently has a $60 price target) and Wells Fargo to downgrade the stock as they have in the past, causing a further sell-off. It offers behavioral healthcare services to its patients in various settings, including inpatient psychiatric facilities, specialty treatment facilities, residential treatment . However, Acadias West Virginia treatment centers then billed West Virginia Medicaid for the urine and blood testing performed by the San Diego Lab, as though the testing had been performed by the treatment centers. 50+ officers raid mental health hospital after patient found in freezer The American Hospital Association and American Medical Association are among the 11 organizations signing the letter. In the last two years, the number of nurse vacancies has risen by 17%. Source: The Braff Group. If one of them sells, it will trigger a mad rush for the door as they look for higher-growth opportunities (healthcare is experiencing 13.7% growth, while Acadia's has shrunk to 9.5%). Unscrupulous actors have taken advantage of well-intended federal law, and a lack of any good law at the state level, to profit off people at the lowest stages of their lives. The problem is that Medicaid paid the facilities a much higher amount for the tests than the lab had charged for the analysis. Improving the Patient Financial Experience Throughout the Patient Journey. Things dont seem to be improving for the Franklin, TN-based healthcare provider; Acadia Healthcare Company, Inc. (ACHC). Acadia Healthcare Employee Reviews - Niche Pursuant to the settlement agreement, Acadia will pay $17 million to resolve allegations of a billing scheme that defrauded Medicaid of $8.5 million. A press release on that date, issued by the plaintiff('s) counsel, Robbins, Geller, Rudman, & Dowd LLP, stated that Jacobs and the PSI leadership ended the dispute. No time off; Little regard for employees happiness/overall mental health (ironic); No flexibility; Extreme lack of communication company-wide; Unless promoted, raise is 2% max; Lack of ethics. Share sensitive information only on official, secure websites. Mental Health Parity and Addiction Equity Act of 2008, rider to the Troubled Asset Relief Program (TARP), resorted to extreme exploitation of minimal regulation via patient brokering, massive gold rush, according to Bloomberg News, misleading or dangerous living conditions. Or they will rack up huge bills for patients, charging $4,000 for every unnecessary urine test. I directly observed a staff member screaming at a kid with severe trauma.[7], Acadia Healthcare came under further scrutiny in Oklahoma where it owns Rolling Hills Hospital. Additional disclosure: All Relevant Litigation Discovered to Date Can Be Found at:https://www.dropbox.com/sh/edipup27v9mbio5/AAAgDjlsvuwW-Kp04PG6ew5va?dl=0. Last year, the location's top physician since 2012 resigned, citing the decline of the facility under Acadia. 19,200. Why Acadia Healthcare Company, Inc. (NASDAQ:ACHC) Could Be Worth Watching The various questions for Acadia surrounded the accounting discrepancies, the insider stock sell-off, and the widespread alleged misconduct. As more government dollars pour into behavioral healthcare, government watchdogs are calling for the creation of a regulatory body to investigate fraud in the SUD industry. Two lawsuits have been filed against the facility this year. One is located on Medlock Bridge Road and the other is on One Technology Parkway. Working here will land you with people's deaths on your conscience. Attorneys Alan McGonigal and Jennifer Mankins represented the federal government in the settlement. Acadia Healthcare stock price target raised to $50 from $35 at Mizuho. Secure .gov websites use HTTPS Acadia Healthcare Company, Inc. ACHC has started the work on building a new 96-bed inpatient behavioral health facility named Geisinger Behavioral Health Center Northeast in Pennsylvania.. Meet Our Staff | Acadia Healthcare Investigators spent hours going through evidence today at two Lakeview Behavioral Health buildings in Gwinnett County. According to the Acadia website, this facility is: located on 43 tranquil acres in the suburbs of Chicago. Insurers could also limit the Mental Health (MH) and Substance Use Dependence (SUD) services offered in benefit packages. One complaint alleges wrongful death due to the neglect of patient Grace Cho. This station is part of Cox Media Group Television. Acadia bought the facility in 2012 and since them three families have sued over injuries to loved ones who were patients there. From January 2012 through July 2018, the lawsuit alleged the Acadia centers used a California lab to conduct urine and blood analysis, then billed Medicaid directly for the services paying the San Diego lab out-of-pocket for its services. Our network of treatment facilities offers multiple levels of care for various behavioral health and substance use disorders. Acadia Healthcare: Capitalizing On Major Mental Health Trend Room 257
Acadia Healthcare Partners With Covenant Health On Three months after the MHPAEA went into effect, Obamacare was signed into law. Acadia would suffer greatly from any changes in the regulatory environment. Acadia recently reported that profits slid in the first quarter to $29.5 million from more than $50 million early last year, led mostly by personnel costs. A Ms. Alisha Rocinek, on behalf of herself and various shareholders, sued Jacobs and the PSI Management in Federal District Court. I have served in many aspects of the oft-misunderstood, exploited, but also necessary field for over seven years. According to Crain's: there's been a flood of private-equity investment into the $35 billion-a-year addiction treatment industry. Source: MarketBeat. West Virginia-based Acadia Healthcare, along with subsidiary CRC Health, has agreed to dole out $17 million to settle accusations of fraud, representing the largest fraud-related settlement in the history of the state, according to a settlement agreement released this week. Acadia Healthcare's behavioral health treatment facilities specialize in helping children, teenagers, and adults who are suffering from mental health disorders and/or alcohol and drug addiction. sued Jacobs and the PSI Management in Federal District Court, Complaint in US District Court (Rocinek et al v. PSI, Filed 7/20/2010), (Garden City Employees Ret. On November 1st, 2018, just a few days shy of the November 5th, 2018 earnings call for Q3 2018, Director Reeve Waud, dumped more stock. according to the Royal College of Nursing. The best natural target was opioid addiction, with its high demand for substance abuse treatment services. The strike force works with law enforcement agencies including State Medicaid Fraud Control Units. Based on 69 reviews. Not only government and Joint Commission oversight but also criminal prosecutions over patient restraint and other deaths and sexual abuse of patients are seriously lacking. I am proud of the work of my office and that of our partners to ensure the end of this multi-million dollar scheme. The Commission bases its accreditation on surveys paid for by the hospitals. 6. workplace safety or health violation. All they had to do was limit the number of provider visits or the number of days they would cover for mental health patients. CRC Health operates its subsidiary, Acadia Healthcare, located in Tennessee with treatment centers in West Virginia. He recently acquired an ownership stake in the Nashville Predators, according to The Tennessean. Assistant United States Attorneys Alan McGonigal and Jennifer Mankins handled the matter on behalf of the United States. 15). I/we have no positions in any stocks mentioned, but may initiate a short position in ACHC, UHS, AAC over the next 72 hours. Opioid 'patient brokers' finally get the treatment they deserve - USA TODAY Acadia is a leading provider of behavioral healthcare services across the United States. Acadia is experiencing skyrocketing competition from legitimate firms. Henry Ford Health and Acadia Healthcare Break Ground on New Behavioral The company's shares (Ticker: ACHC) closed at $32.60 Tuesday, down nearly four percent from Monday. Presently, over 70% of the companys top-line is paid to Acadia by the British and American taxpayers, he reported. All health care related cases in the Southern District of West Virginia, whether they are the subject of criminal or civil investigation or enforcement, are directed through ARREST. Residential treatment at Timberline Knolls includes a state-approved school for adolescents and 24-hour, 7 day per week medical care. 27). 3. Working at Acadia Healthcare: 490 Reviews in US | Indeed.com from The University of Oklahoma in Norman, Oklahoma, where he studied Economics. Self care is often encouraged and the free breakfast, lunch, and Dinner is a plus! Joey Jacobs stated: The company remains actively engaged with its acquisition pipeline and expects its 2018 acquisitionactivity to be heavily skewed toward acute facilities in the United States. This is a very large-scale investigation, said Gwinnett County Police Spokesperson Michele Pihera. The company, which runs mental-health and addiction-treatment facilities, reported fourth-quarter net income of $63.1 million, or 67 cents a share, compared with $71.5 million, or . The Medicaid Fraud Control Unit in West Virginia is the single entity of the West Virginia state government that is certified annually by the Secretary of the U.S. Department of Health and Human Services to conduct statewide investigations of healthcare providers that defraud the Medicaid program. Though that law had wonderful intentions, it was far too narrow; it included no provisions for substance use or dependency issues. Overview. About Us | Acadia Healthcare [5]The Senator wrote the Joint Commission, saying it appears to be unable to aggressively enforce the necessary standards on all facilities. He also cited a Wall Street Journal story about Cooley Dickinson Hospital in Northamption, Massachusetts, which was given the Gold Seal of Approval by the Joint Commission even after CMS threatened to cut it off over safety problems which led to preventable patient deaths. 4. Working at Arcadia Health Care: 68 Reviews | Indeed.com It closed all of the loopholes insurers used to circumvent the prior Mental Health Parity Act of 1997 (MHPA). A member of the direct care team at Acadia's flagship facility, Sierra Tucson (located in Oro Valley, AZ), mentioned the following in another Glassdoor employment review entitled "Short staffed to the point that patients are put in danger,". Of course, for mental health; reimbursements get double-scrutiny thanks to fraud and broadly defined parameters of treatment. If you have an ad-blocker enabled you may be blocked from proceeding. Acadia Healthcare. 50+ officers raid mental health hospital after patient found in freezer, other disturbing claims More than 50 local police officers raided a local mental health hospital. Learn about careers at Cox Media Group. Our community is ready to answer. No response was provided or has been since. Revocation seems rare and in the case of repeated allegations against facilities in the behavioral health industry questions whether this contributes to patients health and lives being kept at risk. A hospital, now owned by UHS, hasnt appeared to change much. Acadia Healthcare Reports Third Quarter 2021 Results herehere. ACHC | Publicly Traded Behavioral Healthcare Corporation Source: Y Charts, Cap Table: 2016 ACHC Proxy Statement (pp. It was soon common for clinics and labs to charge more than $4,000 per test, and to test clients two or three times a week. 17). More than 50 local police officers raided a local mental health hospital. It's just a matter of going through a lot of paperwork, Pihera said. Ask a question about working or interviewing at Arcadia Health Care. Source: Complaint in US District Court (Garden City Employees Ret. Many have been subjected to buyouts and the large checks that accompany them. Prior to the act, insurers could require people to pay a greater share of the cost associated with mental health and substance abuse. Our intensive, holistic 6 treatment model results in a depth of recovery that is transformational for residents, and fulfilling for our staff. Insider ownership has plummeted over the last three years, from 30% to now less than 2.5% (See the ACHC Proxy Statement Extractions below, starting with 2012). Many users were young adults and children on their parents' insurance plans. The Capitol Forum found that between January 2014 and September 2018, the facility had been investigated dozens of times after reports of poor care and dangerous conditions. Our human resources department helps ensure that our teams consist of the very finest candidates, and they assist our employees in making the most of their Acadia experience. The settlement resolves a lawsuit that accused the Franklin-based behavioral health care company of defrauding Medicaid of $8.5 million through a lab testing scheme in seven of its drug addiction treatment centers in West Virginia. I wrote this article myself, and it expresses my own opinions. Acadia Healthcare to pay $17 million in settlement of Medicare fraud Largest Healthcare Fraud Settlement Doesn't Stop Behemoth https://www.acadiahealthcare.com. In August 2018, the Department of Justice announced the creation of a new regional Medicare fraud strike force covering Newark, New Jersey and Philadelphia, Pennsylvania, adding to similar such strike forces in Miami, Los Angeles, Detroit, Chicago and other major metropolitan areas. Beth Tipton said her mother is a former patient and victim. Even this year, surfacing rape allegations at Houstons Kingwood Pines Hospital (previously a Psychiatric Solutions facility managed by Jacobs and this same management team) points to the sparse revenue potential for providers across the spectrum. Reeve Waud (left) with Governor Bruce Rauner (R-IL) (right). Editor's note: Seeking Alpha is proud to welcome Penn Little as a new contributor. Jacobs said they have chosen not to change their loans to fixed-rate instruments because they found that financially inviable for the company. In effect, the three combined laws were a mandate for the $3 trillion insurance industry to pay out unlimited reimbursements for a lifetime disease with no cost-effective solution. As of September 30, 2021, Acadia operated a network of 230 behavioral healthcare facilities with approximately 10,200 beds in 40 states and Puerto Rico. Notes : Parent-subsidiary linkages are based on relationships current as of the latest revision listed in the Update Log, which may vary from what was the case when a violation occurred. Required insurers to cover substance abuse treatment without exception on an out-of-network basis (Out-of-network, meaning "PPO Plans" or the type of revenue from which most publicly traded companies or institutional dollars seek to derive their profit). It has been saddled with $3.7 billion in debt, unable to pay. CRC allegedly billed Acadia, and Acadia paid the San Diego lab, while at the same time billing West Virginia's Medicaid program, with the latter company receiving more than $8 million from Medicaid. CHARLESTON, W.Va. United States Attorney Mike Stuart, along with Special Agent in Charge Maureen R. Dixon, United States Department of Health and Human Services Office of Inspector General (HHS-OIG), Acting Assistant Special Agent in Charge Justin Schoeman, Drug Enforcement Administration (DEA), Cabinet Secretary Bill J. Crouch, West Virginia Department of Health and Human Resources, and Director Mike Malone, West Virginia Medicaid Fraud Control Unit (MFCU), announced that his office has settled healthcare fraud claims against Acadia Healthcare Company, Inc. (Acadia). Both he and his partner were convicted of financial crimes as well. In regards to Jacobs' tenure as CEO of PSI, himself and his team were subjected to various allegations and litigation after the sale to UHS. Acadia Healthcare Careers Ada, OK, Rolling Hills Hospital. Defendants' fraudulent scheme and course of business that operated as a fraud or deceit on purchasers of Psychiatric Solutions common stock was a success, as it: (I) deceived the investing public regarding Psychiatric Solutions prospects and business; (II) artificially inflated the price of Psychiatric Solutions' common stock; (III) allowed certain of the defendants to reap over $5.6 million in insider selling proceeds; and (iv) caused plaintiff and other members of the Class to purchase Psychiatric Solutions common stock at inflated prices." Investigations by health inspectors from the Centers for Medicare and Medicaid Services revealed over 50 pages of violations ranging from unqualified staff to infection control deficiencies, patient rights, and maintenance issues. They could eliminate some of those cases, but they could also find evidence of more criminal activity, Pihera said. It appears all the employees are cooperative, they all understand why we are here, Pihera said. Meanwhile, Acadia has fought to continue its rapid growth. Dec. 18, 2020 at 6:46 a.m. Source: YCharts. February 13, 2019. The message is clear if you are cheating the system and we find you, youll not only pay for the damage done but far more. Acadia Healthcare Company, Inc. ( NASDAQ:ACHC ), might not be a large cap stock, but it saw significant share price movement during recent months on the NASDAQGS, rising to highs of US$89.06 and . In 2015, American Addiction Centers ((AAC)) was charged with murder in California the first-ever corporation to be charged with second-degree murder. A month-long news investigation by WXYZ of Detroit, MI, found: a pattern of assaults on staff dating back years, repeated allegations of physical and sexual abuse involving patients. Questions about Arcadia Health Care. The CIA requires CRC and Acadia to maintain a compliance program, implement a risk assessment program, and hire an Independent Review Organization to review Medicaid claims. New Baltimore, MI, Harbor Oaks Hospital. Geisinger partners with Acadia Healthcare to expand behavioral health The company expects to add more than 800 beds to current and new facilities in 2018. 2. Yet cost-cutting has persisted. Courtesy: Acadia Healthcare. When Bleecker Street Research brought to light ACCs over-billing practices for urine tests, that was the fatal blow.