Acadia to pay $20M over improper billing allegations: 6 things to know

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. 

Six 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.

  • On Sept. 27, Acadia issued a statement 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.

    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. 

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