Acadia Healthcare Settles Federal Investigation for Nearly $20 Million
Acadia Healthcare, recognized as one of the largest for-profit chains of psychiatric hospitals in the United States, has reached a substantial settlement of nearly $20 million to resolve a federal investigation. This inquiry accused the company of engaging in fraudulent practices that misused taxpayer-funded health insurance programs, including Medicare and Medicaid. The announcement was made by the Justice Department on Thursday.
Federal prosecutors revealed that Acadia had a troubling pattern of holding patients in their facilities longer than medically necessary and admitting individuals who did not meet the criteria for hospitalization. According to the government’s findings, once patients were in Acadia’s care, the company frequently failed to provide adequate therapeutic services. Furthermore, the staffing levels were alarmingly low, which contributed to a dangerous environment that led to incidents of patient assaults and suicides.
As part of the settlement agreement, Acadia has committed to paying not just the federal government, but also four states: Florida, Georgia, Michigan, and Nevada. This payment aims to resolve allegations that the company had violated several state laws regarding patient care and safety.
Tim Blair, a spokesperson for Acadia, indicated that the company has been actively cooperating with the federal authorities throughout the investigation. He emphasized that Acadia does not admit any wrongdoing in this matter. Blair stated, “Resolving this investigation allows us to ensure our focus remains on providing quality care to our patients and their families.”
Acadia Healthcare operates over 50 psychiatric hospitals across the nation, with more than half of its revenue derived from government insurance programs, highlighting the significant role these funds play in the company’s operations and financial health.
