HENDERSON (KTNV) — Acadia Healthcare Company Inc., which owns and operates Seven Hills Hospital in Henderson, has agreed to pay a settlement.
That's to resolve allegations that it knowingly billed patients for medically unnecessary inpatient behavioral health services or for services that did not meet federal and state regulations.
According to the U.S. Department of Justice, between 2014 and 2017, Acadia knowingly submitted false claims for payment to Medicare, Medicaid and TRICARE for those services and admitted beneficiaries who weren't eligible for inpatient treatment and had "improper and excessive lengths of stay".
DOJ officials also claim Acadia didn't provide adequate staffing, training, and/or supervision of staff, which led to assaults, suicides, and "other harm".
According to the DOJ, the investigation began due to several former Acadia employees who came forward as whistleblowers. One was a nurse who resigned in 2016 due to the company's practices. A second was fired in 2017 after objecting to Acadia's actions and calling them illegal. A third was a nursing director in Georgia who filed a lawsuit against the company.
The whistleblower lawsuit also brought up illegal kickbacks and Acadia's use of electroconvulsive treatment without patient consent.
“My only hope is that this investigation and settlement will stop any future harms,” said Janel Quinn, a principal of The Employment Law Group, who represents two of the whistleblowers. “Psychiatric patients arrive in a fragile and deeply vulnerable state, and they deserve compassionate care — not to be detained for maximum dollars.”
Under the settlement agreement, Acadia will pay $16,663,918 to the U.S. to resolve its liability under the False Claims Act for false billings.
The company will also pay an additional $3,186,082 to Florida, Georgia, Michigan, and Nevada to resolve their state law claims against Acadia.
You can read the full settlement below.
Acadia Settlement by jarah.wright on Scribd
