Acadia Healthcare Company Inc. (ACHC) has agreed to pay a hefty $16.6 million to settle allegations that it violated the False Claims Act. The allegations stem from the company’s billing practices for inpatient behavioral health services between 2014 and 2017, specifically targeting federal healthcare programs such as Medicare, Medicaid, and TRICARE.
The government contends that Acadia admitted patients who were ineligible for inpatient treatment and kept them longer than necessary. Additionally, they claim the company failed to provide adequate staffing and supervision, leading to serious patient harm including suicides and assaults. The accusations also include the company’s failure to provide services that meet federal and state standards, such as insufficient therapy and discharge planning.
This settlement includes additional payments totaling $3.2 million to four states involved in the case: Florida, Georgia, Michigan, and Nevada.
Despite the settlement, the government’s investigation into Acadia’s recent practices continues. Reports from former employees in Georgia and Missouri, who worked in hospital emergency rooms and Acadia facilities, respectively, have triggered inquiries from the FBI and the Health and Human Services Department’s inspector general’s office.
These former employees alleged pressure from Acadia to refer patients to their facilities and to label patients as uncooperative or combative to justify extending their stays. The inspector general’s office, however, emphasized that the settlement does not preclude further investigation into more recent activities.
In response to the government’s investigation and recent media reports concerning troubling patient experiences at Acadia’s facilities, Acadia Healthcare issued a press release stating they are cooperating fully with authorities. The company’s CEO, Chris Hunter, addressed the concerns, stating that the reports are inconsistent with their policies and do not reflect the complexities of behavioral healthcare.
To improve patient and staff safety and enhance care coordination, Acadia plans to invest an additional $100 million in technology upgrades. These upgrades include electronic medical records (EMR) systems, wearable remote patient monitoring devices, staff communication and alert tools, and a cloud-based performance improvement platform. These innovations aim to improve transparency and oversight of clinical and quality operations across Acadia’s facilities.
In an SEC filing, Acadia Healthcare revealed that the United States Attorney’s Office for the Southern District of New York issued a voluntary information request and a grand jury subpoena from the United States District Court for the Western District of Missouri. These inquiries focus on Acadia’s admissions processes, patient stay length, and billing practices. Acadia’s subsidiary also received a grand jury subpoena concerning similar issues. The company anticipates further document requests from the U.S. Securities and Exchange Commission and potential requests from other governmental bodies.
Following the settlement announcement, ACHC stock dropped 26.60% to $55.47 at the last check on Friday.
