Associated media – Related media
The Department of Veterans Affairs is currently probing Acadia Healthcare, a major network of psychiatric facilities, for potentially defrauding government health insurance schemes by unnecessarily prolonging patient stays, sources familiar with the matter reveal.
This inquiry by the department’s inspector general was initiated following Acadia’s disclosure to its investors about existing investigations into its patient admission strategies by other federal entities, including Manhattan prosecutors and a Missouri grand jury. Acadia is heavily dependent on government-funded programs like Medicare and Medicaid for its revenue. Further scrutiny from the Securities and Exchange Commission and additional bodies is anticipated.
Acadia has responded to the allegations by affirming its cooperation with the investigations and stating that its patient care decisions are made by qualified medical personnel. The company has refuted any accusations of holding patients improperly.
The new investigation follows reports by The New York Times in September, which suggested that Acadia might be detaining patients beyond medical necessity, a practice potentially breaching state laws. According to the report, some individuals who sought routine mental health care at emergency rooms were transferred to Acadia’s facilities and retained until their insurance benefits were exhausted, lacking any medical justification for such extended stays. These findings were based on numerous complaints, court documents, and interviews with both current and former employees of Acadia, numbering over fifty.
Recently, Acadia consented to a nearly $20 million settlement with the Justice Department over allegations similar to those currently under investigation, claiming that the company held patients longer than needed and admitted those who did not require inpatient care from 2014 to 2017. In this settlement, Acadia did not admit to any wrongdoing.
The ongoing investigations are concentrated on more recent activities. It’s alleged that Acadia charged for patient care when individuals were stable enough for discharge and did not require the level of care provided. The claims are based on information from insiders who chose to remain anonymous due to the sensitivity and non-public nature of the investigation.
Moreover, recent interviews of several former Acadia employees from Georgia and Missouri conducted by the FBI and the Health and Human Services Department’s inspector general’s office corroborate the ongoing concerns regarding Acadia’s operations.
The Department of Veterans Affairs has yet to release any comments regarding the ongoing investigations.
Connected media – Associated media
