Please disable your ad-blocker and refresh. Reeve Waud (left) with Governor Bruce Rauner (R-IL) (right). era at Psychiatric Solutions. In August 2018, the Department of Justice announced the creation of a new regional Medicare fraud strike force covering Newark, New Jersey and Philadelphia, Pennsylvania, adding to similar such strike forces in Miami, Los Angeles, Detroit, Chicago and other major metropolitan areas. According to a DOJ press release, Medicaid subsequently paid the facilities a substantially higher amount for these tests than what had actually been charged by the laboratory. No response was provided or has been since. The various questions for Acadia surrounded the accounting discrepancies, the insider stock sell-off, and the widespread alleged misconduct. 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. We will continue working with the U.S. Attorney and other law enforcement partners to protect government health programs, taxpayers, and importantly people who depend on these funds for vitally needed treatment.. Treat employees better before every ounce of talent is gone and working for competitors. For months, former patients and their families have complained of unexplained injuries after leaving Lakeview. A hospital, now owned by UHS, hasnt appeared to change much. 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 . I. We will continue working with the U.S. Attorney and other law enforcement partners to protect government health programs, taxpayers, and importantly people who depend on these funds for vitally needed treatment., The West Virginia Department of Health and Human Resources, through its Medicaid Fraud Control Unit, continues to protect the integrity of healthcare programs and the citizens of West Virginia, said Bill J. Crouch, Cabinet Secretary of the West Virginia Department of Health and Human Resources. Good morning, and welcome to Acadia's Fourth Quarter 2022 Conference Call. In the two previous years, it has experienced a 20%+ drop after its Q3 earnings announcement. Lemont, IL, Timberline Knolls. Investigators spent hours going through evidence today at two Lakeview Behavioral Health buildings in Gwinnett County. Acadia has been unable to raise any additional funds, either through financing or through additional stock placement, since Q2 2016. 2023 Cox Media Group. It has been saddled with $3.7 billion in debt, unable to pay it down since Q1 2017. February 13, 2019. The West Virginia Centers provide outpatient drug treatment, including the administration of Methadone and the prescribing of Suboxone and Subutex. There appears to be an acceptable level of patient abuse and sexual abuse because thats the norm in the mental health industry. 3.9. . All Rights Reserved, 6616 Sunset Blvd., Los Angeles, CA 90028323-467-4242 / 800-869-2247, Psychiatrists/Physicians admitDisorders are not a Disease, Alternatives to Psychiatric Drugs for Children. System et al v. PSI, Filed 9/21/2009). This corporation is taking advantage of the most vulnerable people in our. Working at Acadia Healthcare: 490 Reviews in US | Indeed.com Moncton's coming concert scandal: Morning File, Thursday, February 12 A damaged reputation. The 2009 suit alleged: (PSI) suffered from systematic quality of care and patient safety problems. The company rampantly and openly commits insurance fraud. Pursuant to the settlement agreement, Acadia will pay $17 million to resolve allegations of a billing scheme that defrauded Medicaid of $8.5 million. Acadia Healthcare shares fall on mixed-bag results, forecasts. It angers me.. Acadia Healthcare: More Abuse, More Need for Government Oversight of The problem is that Medicaid paid the facilities a much higher amount for the tests than the lab had charged for the analysis. Fort Myers, FL, Park Royal Hospital. The CIA requires CRC and Acadia to maintain a compliance program, implement a risk assessment program, and hire an Independent Review Organization to review Medicaid claims. Acadia Settlement Agreement The Mental Health Watchdog The concept of treating addiction is broadly defined. Source: Marketwatch. Fraudulent billing by these Acadia/CRC drug treatment clinics, as contended by the government, limits the States ability to provide desperately needed addiction treatment services, said Maureen R. Dixon, Special Agent in Charge of the Office of Inspector General of the U.S. Department of Health and Human Services Region including West Virginia. Fraudulent billing by these Acadia/CRC drug treatment clinics, as contended by the government, limits the States ability to provide desperately needed addiction treatment services, Maureen Dixon, Special Agent in Charge of the Office of Inspector General of the U.S. Department of Health and Human Services Region including West Virginia, said in the release. 27. As a result of the $17 million settlement, which represents twice the actual loss suffered by Medicaid, both the state and federal programs will be made whole. Los Angeles, CA 90028 800-869-2247 323-467-4242 323-467-3720 Fax. Here is the full statement from Lakeview Behavioral and Acadia Healthcare on todays search warrant by @GwinnettPd @wsbtv pic.twitter.com/0QdlzDYH6i. Acadia is experiencing severe interest rate and currency exchange headwinds. Victims of Acadia Healthcare. Astonishingly, in their time since becoming publicly traded, ACHC press release on Q2 earnings from 2018, ACHC presentation Wells Fargo Healthcare Conference 9/2018. Acadia is experiencing skyrocketing competition from legitimate firms. Acadia Healthcare Company, Inc. today announced financial results for the fourth quarter and year ended December 31, 2022. As a result, Sierra Tucson has been charged with several wrongful deaths. Carpenter didnt respond further. Debbie Osteen is Former Chief Executive Officer at Acadia Healthcare. Unscrupulous operators resorted to extreme exploitation of minimal regulation via patient brokering, or "junkie hunting," as it's often called, to increase revenues further. Barred companies from rejecting those with pre-existing conditions. On Tuesday morning 02/28/2023 the Acadia Healthcare Co Inc share started trading at the price of $77.74. Acadia has been unable to raise any additional funds, either through financing or through additional stock placement, since Q2 2016. When Bleecker Street Research brought to light ACCs over-billing practices for urine tests, that was the fatal blow. Source: Complaint in US District Court (Rocinek et al v. PSI, Filed 7/20/2010). Acadias treatment centers paid the San Diego Lab directly. Residential treatment at Timberline Knolls includes a state-approved school for adolescents and 24-hour, 7 day per week medical care. 4. Compare. Revenue totaled $675.3 million, an increase of 13.8% over the fourth . In this case, every dime in false billings was doubled for a total settlement that represents twice the harm caused. Medicare/Medicaid contract risk. Acadia is a leading provider of behavioral healthcare services across the United States. 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. 10. Acadia Healthcare (ACHC) Starts Building New Behavioral Facility Or they will rack up huge bills for patients, charging $4,000 for every unnecessary urine test. Detectives said they believe they will find evidence of dozens of crimes. Our Mission What we found most alarming were the instances of restraint and seclusion violations where adolescents were left unmonitored in seclusion rooms. 27). Yet cost-cutting has persisted. CRC Health operates its subsidiary, Acadia Healthcare, located in Tennessee with treatment centers in West Virginia. According to the Acadia website, this facility is: located on 43 tranquil acres in the suburbs of Chicago. Email the writer:jeff.lagasse@himssmedia.com, 2023 Healthcare Finance is a publication of HIMSS Media, Optum: Two new Alzheimer's drugs in the pipeline, AHA voices support for telehealth expansion bill, Amazon completes $3.9B acquisition of One Medical, Healthcare organizations ask HHS to delay quality measure reporting for ACOs. The PsychCrime Database - PsychCrime.org Overall, the sexual assault allegations are eerily similar to the lawsuits from the Jacobs et al. Acadia Healthcare Reports Fourth Quarter 2022 Results 50+ officers raid mental health hospital after patient found in freezer Regulators had inadvertently created an environment ripe for investment. Huntington Comprehensive Treatment Center in West Virginia. Insurers instantly discovered ways to circumvent it. Acadia was involved in approximately zero of those transactions. 15). These treatment centers are located in Charleston, Huntington, Parkersburg, Beckley, Williamson, Clarksburg, and Wheeling. 20,000 Employees We employ professionals who are dedicated to developing innovative ways to deliver individualized behavioral health treatment. Robbins Geller Defeats Motion to Dismiss in Acadia Healthcare https://www.acadiahealthcare.com. Medicaid paid Acadias treatment centers $8,500,000 as a result of these moderate and complex urine and blood testing claims, resulting in a loss of $2,181,100 to the State of West Virginia and $6,318,900 to the United States. Acadia Healthcare Acquires CenterPointe Behavioral Health System MH/SUD Peers vs. S&P 500 (Normalized). A Ms. Alisha Rocinek, on behalf of herself and various shareholders, sued Jacobs and the PSI Management in Federal District Court. 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? Another law, passed in 1997, had tried to achieve something similar. According to The Capitol Forum, All Joint Commission reports on Oasis that were included in the documents found the facility to be in compliance with state regulations. Yet each Joint Commission report stated that no onsite survey was conducted.[4], In 2017, Senator Charles Grassley criticized the Joint Commission over it designating a Universal Health Services (UHS) behavioral facility, Shadow Mountain in Oklahoma, with a Gold Seal of Approval when there were serious allegations of patient abuse and sexual misconduct against it. Today, regulations have finally set in in some states; costs are cut so far that treatment centers often have misleading or dangerous living conditions, and fail to provide individuals with the treatment they desperately need. The deficiencies led to a failure by the Company to: protect patients from sexual abuse; provide patient care in a safe environment; ensure its patients were adequately monitored; ensure its facilities were adequate(ly) staffed, adequately train and supervise its staff; and ensure incidents were properly reported to state and federal authorities." [6], When allegations are substantiated, in most situations, the facility is required to submit an acceptable plan of correction to the Department, ADHS told The Capitol Forum. That's because the West Virginia centers billed West Virginia Medicaid for the urine and blood testing performed by SDRL, the San Diego reference lab, and another lab, the CRC-owned 10th street lab, as though it had been performed by the West Virginia Centers. Prior to the act, insurers could require people to pay a greater share of the cost associated with mental health and substance abuse. If you have information that would assist KSF in its investigation, or have been a long-term holder of Acadia shares and would like to discuss your legal rights, you may, without obligation or. At Acadia Healthcare, our commitment to integrity and compassionate care is realized each day by our highly qualified staff. It was soon common for clinics and labs to charge more than $4,000 per test, and to test clients two or three times a week. This is a strong message and a massive penalty. Of the $17 million settlement, nearly $2.2 million will be paid directly to the State of West Virginia. The investigation was conducted by HHS-OIG, the Drug Enforcement Administration, West Virginia Medicaid Fraud Control Unite and members of the U.S. Attorneys Healthcare Fraud Abuse, Recovery and Response Team. Coverage of this has been widespread, as seen below: Boy, 5, Found Dead After Spending 8 Hours in Van Outside Children's Health Clinic: Cops, Ascent Children's Health Services to close all facilities. 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. In the shareholder earnings call for Q2, Joey Jacobs said they were expecting one more interest rate hike by the end of the year. [5] UHS in the hot seat: Senator calls for federal probe over patient care concerns at top-performing hospital FierceHealthcare, 25 Apr. They also increased cost sharing through higher deductibles, co-pays, and out-of-pocket payments. He said: Ultimately, it became a matter of principle over passion, and the former was non-negotiable for me. 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. With more than 20,000 employees serving approximately 70,000 patients daily, Acadia is the largest stand-alone behavioral health company in the U.S. Acadia provides behavioral healthcare services to its patients in a variety of settings, including inpatient psychiatric hospitals, specialty treatment facilities, residential treatment centers and About Us | Acadia Healthcare Questionable accounting for goodwill and PPE depreciation expenses. [3], The information The Capitol Forum found further raises concerns about the Joint Commission. Acadia was established in 2005 to develop and operate a national network of behavioral health facilities providing psychiatric and chemical dependency services to its patients. There has been speculation of a private equity buyout of the company; however, this has not been verified. Beth Tipton said her mother is a former patient and victim. Penn holds a B.A. by making a substantial payment to investors harmed by the fraud perpetrated by defendants. 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. Unscrupulous actors have taken advantage of well-intended federal law, and a lack of any good law at the state level, to profit off people at the lowest stages of their lives. on Monday offered up sales results and forecasts that beat estimates, but a weaker showing for profits. Many users were young adults and children on their parents' insurance plans. He tries to keep his golf game in shape and is a loyal fan of his alma mater's Oklahoma Sooner football team.Disclosure: Katie Mikles (SeekingAlpha Contributor) and I are colleagues and partners from a journalistic and entrepreneurial standpoint as well as personal friends. ignoring their complaints, and had poor quality control procedures in place. 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. Nothing was locked up that could be broken and used for self-harm. Acadia Healthcare came under further scrutiny in Oklahoma where it owns Rolling Hills Hospital. Behavioral Healthcare M&A Deal Volume. The company also tried to buy Highland Hospital in Charleston in 2016, with the Highland board unanimously approving the sale, but hospital officials later said the deal was nixed, and Highland instead was scooped up by Meridian Behavioral Health Systems in 2017. Allegations of potential fraudulent billing and abuse are not limited to Acadia and UHS. 50+ officers raid mental health hospital after patient found in freezer, other disturbing claims More than 50 local police officers raided a local mental health hospital. 30% of Acadias revenue comes from the UK, but problems exist, such as: The shortage of nursing staff in the UK is cause for alarm bells. I should know more later this week. 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%). 7, No. Authorities said they are looking into complaints of abuse, over-druggingand fraud at the facility owned by Acadia Healthcare. Acadia Healthcare to pay $17 million in settlement of Medicare fraud Compared to the closing price on Monday 02/27/2023 on NAS of $80.49, this is a drop of 3.42%. Acadia Corporate Headquarters 6100 Tower Circle, Suite 1000 Franklin, TN 37067 Tel: 615-861-6000 Toll Free: 855-526-8228 Fax: 615-261-9685 Additional Information Treatment Overview Populations Overview Programming & Services Careers Available Find Your Treatment Facility Disorders We Treat New Baltimore, MI, Harbor Oaks Hospital. $11,000. Acadia will likely be forced to impair goodwill due to Brexit putting downward pressure on Priory Group. That case was filed by counsel on behalf of the Garden City Employees Retirement System and other affected PSI shareholders. She had bruising all over, Tipton told Thomas. 16). Absent sufficient regulation, the industry saw nearly every publicly-listed behavioral healthcare providers stock soar from 2012-2015, as seen below: Stock Price for ACHC (Time Range: Initial Public Offering - 11/13/18). Courtesy: Acadia Healthcare, ACHC: Insider Holdings Decline Since 2015. U.K. and U.S. government health contracts make up the bulk of the money paid to Acadia Healthcare. Peak Consulting Partners focused on healthcare management and finance. 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 . 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. At Lakeview, no one would talk to Channel 2, but group CEO Jim Spruyt emailed saying: We continue to work collaboratively and transparently with law enforcement as they follow up their investigation of uncorroborated complaints.. Naturally, investment firms jumped on the opportunity. Acadia Healthcare CEO Joey Jacobs. A large non-profit acquired the firm in 2016, and it still thrives today, despite Penn moving on to his passion: investing.Now, a decade later, Penn has exited three start-ups. It closed all of the loopholes insurers used to circumvent the prior Mental Health Parity Act of 1997 (MHPA). 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. Assistant United States Attorneys Alan McGonigal and Jennifer Mankins handled the matter on behalf of the United States. Acadia Healthcare: Very Scary Findings From A 14-Month Investigation While it says that it is keeping debt high to make additional acquisitions, those acquisitions have not happened. It's even harder to find an intrinsic value above $0. On November 1st, 2018, just a few days shy of the November 5th, 2018 earnings call for Q3 2018, Director Reeve Waud, dumped more stock. Acadia Healthcare Company, Inc. (ACHC) - Yahoo! Henry Ford Health and Acadia Healthcare Break Ground on New Behavioral Yet Acadia has not made any purchases in the last two years, and they have begun to champion joint venture de novo projects like the one with St. Thomas Hospital in Nashville, for example. Q4 2022 Acadia Healthcare Company Inc Earnings Call Self care is often encouraged and the free breakfast, lunch, and Dinner is a plus! ; https://www.jointcommission.org/about/jointcommissionfaqs.aspx#2323. The settlement is about double the payment that Acadia received from Medicaid. MARKET PULSE Health-clinic operator Acadia Healthcare Co. Inc. (ACHC) on Monday offered up sales results and forecasts that beat estimates, but a weaker showing for profits. It operates a network of over 225 facilities across the United States and Puerto Rico. Lock 5. Combined, the two laws were meant to guarantee that all people suffering from addiction and mental health disorders could get access to the care they needed. I was made aware that the Oklahoma Department of Human Services apparently ordered the removal of all ODHS children from the facility. Source: Chicagosplash.com. Working at Arcadia Health Care: 68 Reviews | Indeed.com Surely, it's not hard to see why; HCA owns and operates 162 hospitals and 113 surgery facilities, the majority of which are located in the US - and with the ever-growing healthcare fraud crisis that seems to plague the nation, HCA and its subsidiaries commonly find themselves in hot water. Joey Jacobs has extracted about $78 million from the company thus far (not including his compensation and bonus package). Police spent hours searching and seizing patient records and computers, as well as interviewing workers at the administrative office. Room 257 Acadia offers an unhealthy work environment, terrible management that is rarely on site, and unreasonable expectations. 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. Kaskela Law LLC Announces Investigation of Acadia Healthcare Company I am proud of the work of my office and that of our partners to ensure the end of this multi-million dollar scheme. 27). 1. ) or https:// means youve safely connected to the .gov website. GWINNETT COUNTY, Ga. More than 50 local police officers raided a local mental health hospital. Interest rates. In 2015, American Addiction Centers ((AAC)) was charged with murder in California the first-ever corporation to be charged with second-degree murder. 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. Medicaid, induced by the claims submitted by Acadias treatment centers, paid the treatment centers a substantially higher amount than the San Diego Lab charged to actually perform the testing. According to a report from the Centers for Medicare and Medicaid Services. 32, 4 Feb., 2019; https://www.jointcommission.org/assets/1/6/Accr-Tips-Email-Feb-2014.pdf. CCHR International 6616 Sunset Blvd. The issues at Oasis mirror conditions that The Capitol Forum said it has uncovered at other Acadia facilities: harm to patients caused by poor oversight and understaffing.[1]. I have no business relationship with any company whose stock is mentioned in this article. Geisinger and Acadia Healthcare hold groundbreaking ceremony Myron already had health problems and used a wheelchair, but he could stand for long enough to get into bed or onto the toilet, she said. Acadia Healthcare Employee Reviews - Niche Most importantly, the "private equity offer" publicized in early October by Reuters was for $38 a share but the company was trading as high as $45 a share last week. Then three more in 2019. $17 million the largest healthcare fraud settlement in the history of West Virginia, said United States Attorney Mike Stuart. We collaborate and research together, as many readers know, however, are expressing our own unique investment viewpoints. With all of these facts considered, it is challenging to locate a path forward for Acadia Healthcare Company, Inc. 32, 4 Feb., 2019, [2] Is the Integrity Gap Widening in Behavioral Health?, Brown Consulting Behavioral Services, 21 July 2017, http://www.danbrownconsulting.com/2017/07/21/integrity-gap-widening-behavioral-health/. The company has seen a mass exodus of value, about a third of its market cap, since Littles first report on the behavioral healthcare company. 1. OAKLAND - California Attorney General Rob Bonta today conditionally approved the sale of Adventist Health Vallejo (Adventist Vallejo), an acute psychiatric inpatient hospital, to Acadia Healthcare Company Inc. (Acadia).The Attorney General's conditions, upon which the sale is contingent, address the risk of price increases in the limited market for acute psychiatric services in Northern . Rate It! 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. Geisinger partners with Acadia Healthcare to expand behavioral health It has been saddled with $3.7 billion in debt, unable to pay. Joey Jacobs stated: The company remains actively engaged with its acquisition pipeline and expects its 2018 acquisitionactivity to be heavily skewed toward acute facilities in the United States.