Franklin, Tenn.-based Acadia Healthcare has agreed to pay $19.85 million to settle allegations that it submitted false claims for unnecessary behavioral health services, the Justice Department said Sept. 26.
A day later, Acadia said it is facing federal investigations regarding its admission, length-of-stay and billing practices, according to filings with the U.S. Securities and Exchange Commission.
Eight things to know:
- The government alleges that between 2014 and 2017, Acadia billed Medicare, Medicaid and TRICARE for inpatient behavioral health services that were either not medically necessary or did not meet regulatory standards. The health system is accused of admitting patients who did not require inpatient care and keeping patients longer than necessary.
- The allegations also accuse Acadia of inadequate staffing and a lack of proper staff training, which led to serious safety incidents including assaults and suicides.
- As part of the settlement, Acadia has agreed to pay $16.66 million to the federal government and $3.18 million to settle claims in Florida, Georgia, Michigan and Nevada.
- In a statement to Becker's, a spokesperson for Acadia said the company is cooperating with the government on the matter and that the settlement is not an admission of wrongdoing. The settlement "allows us to ensure our focus remains on providing high quality care to our patients and their families," the company said.
- In its Sept. 27 SEC filings, Acadia disclosed that federal prosecutors in Missouri and New York had requested information related to its length-of-stay and billing practices. The company also received subpoenas from a federal grand jury in Missouri and said it anticipates receiving similar requests from the SEC.
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The federal investigations come after a recent report from The New York Times that claimed Acadia inappropriately held patients beyond medical necessity for financial reasons.
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Acadia issued a statement Sept. 27 outlining commitments it is making to "ensure all patients in Acadia's care receive the support and compassionate treatment they deserve." The company said it has allocated $100 million in technology investments that enhance safety and care coordination, including EMR systems and remote patient monitoring; is expanding its leadership team to include more roles centered on safety; and is working to standardize clinical protocols and training. The company also said there were inaccuracies with "recent media reports" regarding patients' experiences at its facilities.
Their statement can be found in full here. -
Acadia Healthcare is a for-profit organization operating 258 behavioral health facilities nationwide, including 50 psychiatric hospitals.