CHARLESTON, W.Va. United States Attorney Mike Stuart, along with Special Agent in Charge Maureen R. Dixon, United States Department of Health and Human Services Office of Inspector General (HHS-OIG), Acting Assistant Special Agent in Charge Justin Schoeman, Drug Enforcement Administration (DEA), Cabinet Secretary Bill J. Crouch, West Virginia Department of Health and Human Resources, and Director Mike Malone, West Virginia Medicaid Fraud Control Unit (MFCU), announced that his office has settled healthcare fraud claims against Acadia Healthcare Company, Inc. (Acadia). In 2017, the majority of Acadia's US revenue came from Medicaid and Medicare contracts. Acadia Healthcare Co (NASDAQ:ACHC) has observed the following analyst ratings within the last quarter: According to 5 analyst offering 12-month price targets in the last 3 months, Acadia. Penn has found a passion in his ability to expeditiously investigate companies as well as piecing together how they all contribute or are affected by multi-faceted macro trends. CONTACT: Shareholders Foundation, Inc. Michael Daniels +1 (858) 779-1554. ET by Tomi Kilgore. A member of the direct care team at Acadia's flagship facility, Sierra Tucson (located in Oro Valley, AZ), mentioned the following in another Glassdoor employment review entitled "Short staffed to the point that patients are put in danger,". However, an expert in the industry says that Acadia has developed an industry-wide reputation for not providing quality care, cutting costs, and cannibalizing their own programs in order to raise profits. Most importantly, after all of this, is anyone worried about the patients, their pension, or more importantly, the many children in care, separated from their families? It's easy to become a Seeking Alpha contributor and earn money for your best investment ideas. The settlement represents the largest healthcare fraud settlement in the history of West Virginia and is twice the actual loss from the scheme. At March 31, 2020, Acadia operated a network of 588 behavioral healthcare facilities with approximately 18,200 beds in 40. As of September 30, 2021, Acadia operated a network of 230 behavioral healthcare facilities with approximately 10,200 beds in 40 states and Puerto Rico. Only Channel 2 Action News was there when detectives pulled evidence and questioned employees. Earlier this year in California, Christopher Bathum, the owner of a facility, was convicted of multiple sexual assaults of patients. Today, the company appears to be owned by (predominantly) passive dollars. 2.5. It has been saddled with $3.7 billion in debt, unable to pay. No charges have been filed. According to another friendly FBI source (reached via phone in July 2018), Special Agent Tara Smith of Chicago, discussed the link between cost-cutting, potential fraud, and patient harm, and said: it's just not something we do, and it's a challenge to connect the two. This is the embodiment of the operational and financial abuses that have permeated this industry. In regards to Jacobs' tenure as CEO of PSI, himself and his team were subjected to various allegations and litigation after the sale to UHS. Overall rating. The heavy leverage lining the industry artificially inflated valuations beyond 30X EBITDA, spurring many clinicians with a plethora of "modalities" to set up their own shops. Revenue totaled $675.3 million, an increase of 13.8% over the fourth . Included within the purview of the team are the Opioid Fraud and Abuse Detection Unit, Affirmative Civil Enforcement Unit, Appalachian Regional Prescription Opioid Task Force, Medicare and Medicaid Fraud, and Asset Forfeiture efforts related to all healthcare matters. Working here will land you with people's deaths on your conscience. Our network of treatment facilities offers multiple levels of care for various behavioral health and substance use disorders. Assistant United States Attorneys Alan McGonigal and Jennifer Mankins handled the matter on behalf of the United States. Charleston, WV 25301, 110 North Heber Street Cash from operations growth has dried up. Our intensive, holistic 6 treatment model results in a depth of recovery that is transformational for residents, and fulfilling for our staff. Acadia is a leading provider of behavioral healthcare services. 16). 15). Defendants' fraudulent scheme and course of business that operated as a fraud or deceit on purchasers of Psychiatric Solutions common stock was a success, as it: (I) deceived the investing public regarding Psychiatric Solutions prospects and business; (II) artificially inflated the price of Psychiatric Solutions' common stock; (III) allowed certain of the defendants to reap over $5.6 million in insider selling proceeds; and (iv) caused plaintiff and other members of the Class to purchase Psychiatric Solutions common stock at inflated prices." If one of them sells, it will trigger a mad rush for the door as they look for higher-growth opportunities (healthcare is experiencing 13.7% growth, while Acadia's has shrunk to 9.5%). Even this year, surfacing rape allegations at Houstons Kingwood Pines Hospital (previously a Psychiatric Solutions facility managed by Jacobs and this same management team) points to the sparse revenue potential for providers across the spectrum. Please disable your ad-blocker and refresh. CRC allegedly billed Acadia, and Acadia paid the San Diego lab, while at the same time billing West Virginia's Medicaid program, with the latter company receiving more than $8 million from Medicaid. The Beginning: A Legislative Triple-Threat. Jacobs said they have chosen not to change their loans to fixed-rate instruments because they found that financially inviable for the company. Government inspection documents reported allegations of sexual harassment and physical abuse. No response was provided or has been since. It closed all of the loopholes insurers used to circumvent the prior Mental Health Parity Act of 1997 (MHPA). When Bleecker Street Research brought to light ACCs over-billing practices for urine tests, that was the fatal blow. In a June 20, 2018, Glassdoor online review entitled "Used to Be Better, Now It's Just About Acquiring as Much as Possible," one employee in the corporate office wrote the following: People you work with; Corporate office is in a nice area. Government inspection documents reported allegations of sexual harassment and physical abuse. Laboratories that perform non-waived tests are required to have a significantly higher level of certification than the certifications held by the Acadia treatment centers. Source: Marketwatch. On January 17, 2015, a settlement was announced in the Garden City Employees et al case against PSI leadership. For example, its time the Federal Medicaid and Medicare Services (CMS) review the reliability of the Joint Commission, a non-profit tax exempt organization, giving accreditation to hospitals as a condition of licensure for the receipt of Medicare and Medicaid reimbursements. Take these seven facilities as a representative example of allegations consistent with declining quality of care: West Memphis, AR: Ascent Treatment & Outpatient Clinic. Before founding Bar Nothin' Capital Management, and then his research firm Bar Penn was the Co-founder and Managing Partner of Crestview Capital Partners LLC.At Crestview, the firm he co-founded in 2014, Penn led the charge to improve outcomes in mental and behavioral healthcare by scaling quality care models in the arena of community counseling. West Virginia-based Acadia Healthcare, along with subsidiary CRC Health, has agreed to dole out $17 million to settle accusations of fraud, representing the largest fraud-related settlement in the history of the state, according to a settlement agreement released this week. Acadia has been unable to raise any additional funds, either through financing or through additional stock placement, since Q2 2016. This corporation is taking. I directly observed a staff member screaming at a kid with severe trauma.[7], Acadia Healthcare came under further scrutiny in Oklahoma where it owns Rolling Hills Hospital. Investigators spent hours going through evidence today at two Lakeview Behavioral Health buildings in Gwinnett County. I wrote this article myself, and it expresses my own opinions. investigation by WXYZ of Detroit, MI, found: health inspectors from the Centers for Medicare and Medicaid Services, Wauds company paid $90 million for in 2012, the original inquiry, however, nothing has been addressed, lawsuits from the Jacobs et al. Ask a question about working or interviewing at Arcadia Health Care. As part of the settlement, Acadia and its chain of clinics have entered into a five-year corporate integrity agreement with the U.S. Department of Health and Human Services that requires the company to maintain a compliance program, implement a risk assessment program and hire an outside organization to review Medicaid claims. In the two previous years, it has experienced a 20%+ drop after its Q3 earnings announcement. By CCHR International There has been speculation of a private equity buyout of the company; however, this has not been verified. Acadia Healthcare. Klicken Sie auf Alle ablehnen, wenn Sie nicht mchten, dass wir und unsere Partner Cookies und personenbezogene Daten fr diese zustzlichen Zwecke verwenden. What we found most alarming were the instances of restraint and seclusion violations where adolescents were left unmonitored in seclusion rooms. Acadia gets most of its business from referrals. Of course, for mental health; reimbursements get double-scrutiny thanks to fraud and broadly defined parameters of treatment. He has come to enjoy and find a passion for learning and writing about various verticles including energy and transportation.Penn is a proud graduate of Culver Military Academy in Culver, Indiana. We collaborate and research together, as many readers know, however, are expressing our own unique investment viewpoints. Ratings by category. However, when they outperformed at Q4 2017, Waud dumped stock after the release of earnings in February. They also increased cost sharing through higher deductibles, co-pays, and out-of-pocket payments. Ada, OK, Rolling Hills Hospital. Acadia (Nasdaq: ACHC) operates close to 600 facilities in 40 states and the United Kingdom, and is Middle Tennessee's fifth-largest publicly traded health care company, with $2.84 billion of . Davis Group LLC, doing business as Caring Family Solutions, operates programs within Greater New Haven County in Connecticut, and on its website says it is a behavioral health agency dedicated to improving the lives of youth and their families by providing responsive, accountable, and clinical,personal support for Youth.[10]In January 2019, the facilitys owner agreed to pay $100,000 and was suspended from participating in the states Medicaid program for 10 years for an alleged long-term pattern of submitting false claims to the program, including psychotherapy services provided by unlicensed persons, in violation of program regulations and claims submitted for services never provided, authorities said.[11]. In this case, every dime in false billings was doubled for a total settlement that represents twice the harm caused. [1]Acadia Healthcare: ADHS Documents Reveal Violence and Understaffing at Oasis Behavioral Health, Capitol Forum, Vol. I am not receiving compensation for it. by making a substantial payment to investors harmed by the fraud perpetrated by defendants. The Drug Enforcement Administration routinely works in partnership with other agencies to fight the opioid crisis, said Justin Schoeman, Acting Assistant Special Agent in-Charge of DEAs Charleston District Office, which covers West Virginia. . Beckley, WV25801, 845 Fifth Avenue The settlement agreement can be found Barred companies from rejecting those with pre-existing conditions. Two years ago, Brown Consulting Behavioral Services warned that with increased attention of the Department of Health and Human Services (DHS) and the Office of Inspector General (OIG), Behavioral Healthcare leaders, like other healthcare leaders, must re-examine their internal operations and practices to protect their organizations from fraud and abuse. The July 21, 2017 article spoke of an Integrity Gap, referring to the distance between day-to-day conduct and the ethical standards of the organization. This likely indicates that they will be unable to weather the coming rate hikes. Allowed young people to stay on their parents' insurance until the age of 26. United States Attorney Mike Stuart announced the formation of ARREST in February 2019. Two lawsuits have been filed against the facility this year. A place to come and make your grievances against Acadia Health Care public. The company cannot continue to acquire and grow successfully when many departments are understaffed and employees are suffering/completely maxed out on what they can do. 2017, https://www.fiercehealthcare.com/healthcare/uhs-hot-seat-senator-calls-for-federal-probe-over-patient-care-concerns-at-top, [6] https://www.healthexec.com/topics/quality/joint-commissions-failure-has-senator-asking-how-make-its-inspections-public, [7]Acadia Healthcare: ADHS Documents Reveal Violence and Understaffing at Oasis Behavioral Health, Capitol Forum, Vol. The entire industry, which was previously a cash-pay or a charitably-supported field filled with legitimate actors, became a massive gold rush, according to Bloomberg News. The message is clear if you are cheating the system and we find you, youll not only pay for the damage done but far more. By offering medication-assisted. The company, which runs mental-health and addiction-treatment facilities, reported fourth-quarter net income of $63.1 million, or 67 cents a share, compared with $71.5 million, or . herehere. Have a question about Government Services? Questionable accounting for goodwill and PPE depreciation expenses. In 2015, American Addiction Centers ((AAC)) was charged with murder in California the first-ever corporation to be charged with second-degree murder. The organization will pay $17 million to the United States and $2.2 milion to the state of West Virginia. Deal is largest for health care fraud in West Virginia history, Shugga Hi owner sues for right to buy property eyed for ER, Grading the Predators major trades so far. The strike force works with law enforcement agencies including State Medicaid Fraud Control Units. Courtesy: Acadia Healthcare, ACHC: Insider Holdings Decline Since 2015. Courtesy: Acadia Healthcare. Acadia recently reported that profits slid in the first quarter to $29.5 million from more than $50 million early last year, led mostly by personnel costs. era at Psychiatric Solutions, "Used to Be Better, Now It's Just About Acquiring as Much as Possible,", "Short staffed to the point that patients are put in danger,", no bank has ever issued a sell rating. Detectives said they believe they will find evidence of dozens of crimes. Acadia Healthcare Company, Inc. ( NASDAQ:ACHC ), might not be a large cap stock, but it saw significant share price movement during recent months on the NASDAQGS, rising to highs of US$89.06 and . Entry Level Employee. Penn Little is an entrepreneur, researcher, investor, writer, and investigative journalist.Hailing from the small town of Springer, Oklahoma, Penn first began "investing" in the 5th grade, when his group won the 3rd place in a Dallas Morning News-sponsored stock picking contest. The charges were dismissed. The West Virginia Centers provide outpatient drug treatment, including the administration of Methadone and the prescribing of Suboxone and Subutex. Overall Experience. 5. A damaged reputation. Fix the multitude of issues with the current facilities and get a solid foundation before trying to build higher. The problem is that Medicaid paid the facilities a much higher amount for the tests than the lab had charged for the analysis. This is a very large-scale investigation, said Gwinnett County Police Spokesperson Michele Pihera. The Medicaid Fraud Control Unit in West Virginia is the single entity of the West Virginia state government that is certified annually by the Secretary of the U.S. Department of Health and Human Services to conduct statewide investigations of healthcare providers that defraud the Medicaid program. No clear federal definition exists for what constitutes a SUD center, so some entrepreneurs started opening centers in strip malls, filling them with beds, signing users up often through unethical methods. I have been working at Acadia Healthcare full-time (More than a year). Or they will rack up huge bills for patients, charging $4,000 for every unnecessary urine test. ) or https:// means youve safely connected to the .gov website. Acadia is a leading provider of behavioral healthcare services across the United States. Mental Health Parity and Addiction Equity Act of 2008, rider to the Troubled Asset Relief Program (TARP), resorted to extreme exploitation of minimal regulation via patient brokering, massive gold rush, according to Bloomberg News, misleading or dangerous living conditions. Read this brief to learn strategies that increase patient Unplanned hospital readmissions represent significant cost, High out-of-pocket costs are affecting revenue cycles, Siloed technology and data create a big health system pain point, Cigna to increase venture spending on startups, tech, Feds ask pharmacies to donate unused N95 masks, Kaiser, Mass General Brigham operating losses driven in large part by labor expenses, Health benefit costs expected to rise 5.4% in 2023, Adverse events among inpatient admissions hit 25% in 2018, HIMSSCast: The entangled legal battle over the No Surprises Act, Leveraging AI to benefit the healthcare ecosystem for providers, payers and members, Plastic surgeons top list of physicians ranked by happiness, Hospitals more stable, though challenges persist, Medical devices are inherently vulnerable to security breaches, Physicians would rather leave than work for Envision, doctor says, Providence announces $712M expansion in southern California, MGMA presses CMS on prior authorization reform, Sentara Healthcare moves into the community, CMS releases three initiatives to grow ACOs, Patient acuity is driving up hospital costs, AHA says, Hospitals face direct competition from the 'retailization' of healthcare, Interoperability improving, though rural hospitals still lagging, Clover Health cuts losses, logs $84M loss in Q4, Practices keeping close watch on risk adjustment coding, CMS overhauls meaningful use as 'Promoting Interoperability', MA margins higher for insurers despite dip, NIH invests $4M toward reproductive health access for the disabled, House committee investigating potentially anticompetitive PBM tactics, CMS declines to reconsider coverage for FDA-approved drugs for Alzheimer's disease, Geisinger at Home offers primary care to populations with chronic or complex conditions, Top Stories: ATA opposes DEA changes to telehealth prescriptions, HIMSSCast: CFOs are looking to accomplish goals through smaller M&A transactions, Payers must change dynamic with providers to survive in the post-Affordable Care Act world, Employing AI as a tool to predict lung cancer, Senate strikes down healthcare worker vaccine mandate, CDC relaxes indoor mask guidance, including for schools, CA lawmakers introduce bill mandating workplace vaccinations, CVS files patent to sell healthcare services in the metaverse. A weak UK environment. Required insurers to cover substance abuse treatment without exception on an out-of-network basis (Out-of-network, meaning "PPO Plans" or the type of revenue from which most publicly traded companies or institutional dollars seek to derive their profit). Authorities said they are looking into complaints of abuse, over-druggingand fraud at the facility owned by Acadia Healthcare. Acadia Healthcare 31,705 followers 1w Acadia's Comprehensive Treatment Centers, or CTCs, provide vital care for adults who are suffering from opioid addictions. ignoring their complaints, and had poor quality control procedures in place. The investigation was conducted by HHS-OIG, DEA and MFCU, members of the United States Attorneys Healthcare Fraud Abuse, Recovery and Response Team (ARREST), an innovative approach linking civil and criminal enforcement efforts together in a comprehensive attack on the opioid epidemic and healthcare fraud. 27). Courtesy Acadia Healthcare, Cap Table: 2015 ACHC Proxy Statement (pp. Many users were young adults and children on their parents' insurance plans. These treatment centers are located in Charleston, Huntington, Parkersburg, Beckley, Williamson, Clarksburg, and Wheeling. Active contributors also get free access to the SA PRO archive. The American Addiction Centers incident led to increased oversight into the industry and increasing regulation. Acadia has no apparent ability to raise profit margins any further. Only Channel 2 Action News was there when detectives pulled evidence and questioned employees.. MH/SUD Peers vs. S&P 500 (Normalized). Source: MarketBeat. Source: Y Charts, Cap Table: 2016 ACHC Proxy Statement (pp. This is only attained by reducing the quality of care. 19,200. The company's shares (Ticker: ACHC). Pursuant to the settlement agreement, Acadia will pay $17 million to resolve allegations of a billing scheme that defrauded Medicaid of $8.5 million. So, it was not surprising when a research site named 'Aurelius Research' launched a site called 'Acadia Exposed' that has compiled relatively voluminous copies of pending litigation aimed at facilities Acadia owns, as well as the parent company itself.