Connected media – Connected media
The Department of Veterans Affairs is currently examining Acadia Healthcare, a significant operator of psychiatric facilities, for allegedly committing insurance fraud by extending patient stays without medical necessity. This inquiry stems from Acadia’s own admissions to investors about ongoing investigations from various federal agencies, including prosecutors in Manhattan and a grand jury in Missouri, which rely heavily on revenues from government programs like Medicare and Medicaid.
The focus of these investigations is on whether Acadia engaged in practices that unjustly increased their financial returns at the expense of government insurance programs. The Securities and Exchange Commission, along with other regulatory bodies, are also expected to increase their scrutiny of the company.
In response to these allegations, Acadia Healthcare has maintained that its healthcare decisions are made by competent medical professionals and denies any misconduct in retaining patients longer than necessary. The company has expressed its commitment to cooperating fully with all inquiries.
This new probe was prompted by a September report in The New York Times, which suggested that Acadia might be keeping patients longer than medically required, potentially violating state regulations. The report highlighted cases where individuals seeking routine mental health support were held in Acadia’s facilities until their insurance benefits were fully utilized, without any medical basis for such prolonged care. This report drew on a variety of sources, including complaints, legal documents, and statements from over fifty current and former employees of the company.
Furthermore, Acadia recently agreed to pay nearly $20 million to settle claims with the Justice Department related to similar allegations of keeping patients longer than necessary and admitting individuals who did not require inpatient care, from 2014 to 2017. Acadia did not acknowledge any wrongdoing as part of this settlement.
The investigations currently underway are focusing on more recent conduct, alleging that Acadia billed for services when patients were stable enough to be discharged and did not require the level of care they were provided. These allegations primarily come from confidential sources involved in the ongoing investigations.
Additionally, recent interactions with former Acadia employees in states like Georgia and Missouri by FBI and the Health and Human Services Department’s inspector general’s office seem to support the concerns regarding Acadia’s operational practices.
To date, the Department of Veterans Affairs has not publicly commented on the matter. The investigations are ongoing, and further developments are likely as more information becomes available. The outcomes of these investigations could have significant implications for Acadia Healthcare’s operations and financial standing, as well as for the broader healthcare and insurance industries.
Linked media – Linked media
