Contact. It operates a network of over 225 facilities across the United States and Puerto Rico. Questionable accounting for goodwill and PPE depreciation expenses. Huntington:(304) 529-5799. Myron Ballou, 70, was hospitalized at Rolling Hills in December 2017 after staff at the Oklahoma Veterans Center observed changes in his behavior, his wife, Marsha, said. 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. KARK reported that: Ascent Children's Health Services CEO Dan Sullivan admits some employees didn't follow correct protocol and were fired. The settlement represents the largest healthcare fraud settlement in the history of West Virginia and is twice the actual loss from the scheme. A .gov website belongs to an official government organization in the United States. With $3.7 billion in debt, Acadia is poorly positioned in a rising interest rate climate. They also increased cost sharing through higher deductibles, co-pays, and out-of-pocket payments. Ask a question about working or interviewing at Arcadia Health Care. In this case, every dime in false billings was doubled for a total settlement that represents twice the harm caused. On February 4, 2019, The Capitol Forum reported it had obtained 373 pages of Arizona Department of Health Services (ADHS) documents regarding investigations into Acadias Oasis Behavioral Health near Phoenix, which accepts children, adolescents, and adults. Since mid-August 2015, insider holdings have dwindled from 30% to less than 1%. Learn about careers at Cox Media Group. 5. Acadia will likely be forced to impair goodwill due to Brexit putting downward pressure on Priory Group. On October 3, 2008, President Bush signed the Mental Health Parity and Addiction Equity Act into law. 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. This epidemic in the United States exploded throughout the mid-2010s, skyrocketing the number of Substance Use Disorder (SUD) centers. To combat these financial challenges, Acadia has purportedly tried: reputable clinicians and physicians don't want to work with Acadia. Inability to Expand. Compared to the closing price on Monday 02/27/2023 on NAS of $80.49, this is a drop of 3.42%. Company has a NEGATIVE tangible net worth. Medicaid fraud is not a victimless crime. 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. Peak Consulting Partners focused on healthcare management and finance. All health care related cases in the Southern District of West Virginia, whether they are the subject of criminal or civil investigation or enforcement, are directed through ARREST. 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 . I am not receiving compensation for it. 3.9. A lawsuit from one of the victims, Shannon Archer, highlights the conditions of neglect. 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 Department of Justice, together with the Federal Trade Commission (FTC), announced today that the government has resolved allegations that GoodRx Holdings Inc., doing business as GoodRx Gold, GoodRx Care 300 Virginia Street Acadia is a leading provider of behavioral healthcare services. Acadia is nearing a high-risk of default, and logically, would soon be unable to continue to borrow for growth. He recently acquired an ownership stake in the Nashville Predators, according to The Tennessean. An alleged cover-up attempt at the hospital by not reporting the deaths of patients to the facility's governing body. Acadia is experiencing severe interest rate and currency exchange headwinds. 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. 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. The settlement represents the largest healthcare fraud settlement in the history of West Virginia and is twice the actual loss from the scheme. 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. Since the passage of the three new laws, they replaced their first CEO, Norman King "Trey" Carter III, with Joey Jacobs, the former CEO of Psychiatric Solutions, Inc. Then, nearly the entire management team that led PSI accompanied Jacobs to Acadia after PSI was sold to Universal Health Services (Nasdaq: UHS). The following month, the child's family filed a wrongful death suit against Ascent (owned by Acadia), the employees, and its corporate entities for $135 million. 3. LARGEST HEALTHCARE FRAUD SETTLEMENT IN WEST VIRGINIA HISTORY. The Medicaid program is primarily administered by the states, but jointly financed by federal and state funds funds ultimately originating from taxpayers. XFL Quarterback Reinstated After New Details Emerge from Scandal,The XFL reinstated quarterback Quinten Dormady Friday one day after the Orlando Guardians released him for handing out plays from the team's playbook to other teams. Ending racism in healthcare often begins with medical education - and is the target of a new national project. Official websites use .gov The hospital didnt investigate to determine if the reports were legitimate, according to inspection reports. I have no business relationship with any company whose stock is mentioned in this article. [4]Acadia Healthcare: ADHS Documents Reveal Violence and Understaffing at Oasis Behavioral Health, Capitol Forum, Vol. Acadia has been unable to raise any additional funds, either through financing or through additional stock placement, since Q2 2016. A hospital, now owned by UHS, hasnt appeared to change much. At the same time that Acadia's debt burden is close to becoming unserviceable, it keeps saying it will continue expansion. Acadia Settlement Agreement Ask a Question. The West Virginia Centers provide outpatient drug treatment, including the administration of Methadone and the prescribing of Suboxone and Subutex. 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]. They corroborated the accounts of problems and spoke about a lack of executive interest in improving the situation., Things were dangerous, one former employee said. Oversight. Pursuant to the settlement agreement, Acadia will pay $17 million to resolve allegations of a billing scheme that defrauded Medicaid of $8.5 million. 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. More than 50 local police officers raided a local mental health hospital. Twitter:@JELagasse ) or https:// means youve safely connected to the .gov website. Gretchen Hommrich. There appears to be an acceptable level of patient abuse and sexual abuse because thats the norm in the mental health industry. 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. Active contributors also get free access to the SA PRO archive. At Acadia Healthcare, our commitment to integrity and compassionate care is realized each day by our highly qualified staff. At Rolling Hills, he suffered two fractured vertebrae, a dislocated shoulder and a broken foot and never recovered. ; https://www.jointcommission.org/about/jointcommissionfaqs.aspx#2323. Our Mission U.K. and U.S. government health contracts make up the bulk of the money paid to Acadia Healthcare. 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/. Questions about Arcadia Health Care. But, as a profit measure, it worked. Henderson, NV, Seven Hills Hospital. 5. 23. Of the $17 million settlement, nearly $2.2 million will be paid directly to the State of West Virginia. 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. Then three more in 2019. https://www.acadiahealthcare.com. I was once a patient in two facilities that were later purchased by Acadia Healthcare Company, Inc. (Nasdaq: NASDAQ:ACHC), specifically Sierra Tucson (Oro Valley, AZ) in 2006 and Bayside Marin (San Rafael, CA) in 2007. As a result, reputable clinicians are willing to refer to Acadia less and less. This settlement is the first significant result since its inception. 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. This station is part of Cox Media Group Television. by making a substantial payment to investors harmed by the fraud perpetrated by defendants. Presently, over 70% of the companys top-line is paid to Acadia by the British and American taxpayers, he reported. *Some* good colleagues. needed, and desperate to induce actual change, Senator Ted Kennedy and his son, Patrick, were key in adding the. Net cash provided by operating activities for the first half of 2018 was $217 million. I am proud of DHHRs Medicaid Fraud Control Unit under the leadership of Director Michael Malone and its work with the United States Attorneys Office Southern District in combatting healthcare fraud and the opioid crisis and as a member of the innovative ARREST Task Force.. 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. Acadia gets most of its business from referrals. Acadia is experiencing skyrocketing competition from legitimate firms. Charleston, WV 25301, 110 North Heber Street Courtesy Acadia Healthcare, Cap Table: 2013 ACHC Proxy Statement (pp. Its purpose was to ensure that all Americans had access to affordable health insurance health insurance that was now required by law to provide access to MH and SUD care on par with traditional healthcare. 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.. on Monday offered up sales results and forecasts that beat estimates, but a weaker showing for profits. 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. As of June 30, 2021, Acadia operated a network of 229 behavioral healthcare facilities with approximately 10,100 beds in 40 states and Puerto Rico. 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. Los Angeles, CA 90028 800-869-2247 323-467-4242 323-467-3720 Fax. Officials brought their own truck and van for all the evidence they expected to find. As of March 31, 2021, Acadia operated a network of 228 behavioral healthcare facilities with. Source: Nashville Post. The hospital risk physician told regulators that she had: walked into a hot mess of an organization. Please. 19,200. From January 2012 through July 2018, the lawsuit alleged the Acadia centers used a California lab to conduct urine and blood analysis, then billed Medicaid directly for the services paying the San Diego lab out-of-pocket for its services. 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. As of June 30, 2022, Acadia operated a network of 246 behavioral healthcare facilities with approximately 10,800 beds in 39 states and Puerto Rico. Its stock plummeted on August 4, 2015, and the sector's public players peaked, as seen above. United States Attorney Mike Stuart announced the formation of ARREST in February 2019. Acadia has been unable to hire and retain professional personnel. Cash from operations growth has dried up. Dec. 18, 2020 at 6:46 a.m. Our intensive, holistic 6 treatment model results in a depth of recovery that is transformational for residents, and fulfilling for our staff. 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This patient was admitted for alcoholism, but suffered permanent brain damage when, allegedly, a patient violently grabbed her from behind, grasping her hair and viciously slammed her head into the concrete floor. 2.5. From January 1, 2012 to July 31, 2018, Acadias treatment centers sent urine and blood samples to an outside laboratory, San Diego Reference Laboratory (the San Diego Lab) for all moderate and high complexity drug testing. Room 209 This is a very large-scale investigation, said Gwinnett County Police Spokesperson Michele Pihera. Not only government and Joint Commission oversight but also criminal prosecutions over patient restraint and other deaths and sexual abuse of patients are seriously lacking. CRC Health had been accused of collecting blood and urine samples at drug treatment centers in a number of West Virginia towns, which it then sent for screening to San Diego Reference Laboratory. A major investor-owned mental health and addiction treatment company will pay the federal government $17 million to settle allegations it defrauded Medicaid in West Virginia. 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. She had bruising all over, Tipton told Thomas. The Beginning: A Legislative Triple-Threat. Please disable your ad-blocker and refresh. 15). It's just a matter of going through a lot of paperwork, Pihera said. The American Addiction Centers incident led to increased oversight into the industry and increasing regulation. According to an anonymous industry expert trained in both business and medicine, "due to the number of suicides at some of their facilities, Acadia's ability to accept certain patients has been restricted by state-level governments.". In June 2017, four employees were charged with manslaughter after a 5-year-old boy died. Acadia Healthcare operates 10,200 beds spanning 230 facilities in 41 American states and territories. According to The New York Times: Starting in 2010, as opioid abuse evolved into a crisis and the Affordable Care Act offered insurance to millions more young people, the cost of urinalysis tests soared. Though that law had wonderful intentions, it was far too narrow; it included no provisions for substance use or dependency issues. It has been saddled with $3.7 billion in debt, unable to pay. 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 . Some notable issues stated in the conference call or in public filings were: ACHC 2018 Recommendations. Cap Table: 2012 ACHC Proxy Statement (pp. Compare. Insurers could also limit the Mental Health (MH) and Substance Use Dependence (SUD) services offered in benefit packages. This is the embodiment of the operational and financial abuses that have permeated this industry. Pursuant to the settlement agreement, Acadia will pay $17 million to resolve allegations of a billing scheme that defrauded Medicaid of $8.5 million. 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 A weak UK environment. 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.. New Baltimore, MI, Harbor Oaks Hospital. M&A activity in the sector leveled off and has declined from 60 deals in 2016 to 47 deals in 2017, according to The Braff Group. Inequities can be found in every facet of the industry, but targeting medical students and residents can help stem the tide. It closed all of the loopholes insurers used to circumvent the prior Mental Health Parity Act of 1997 (MHPA). The 2009 suit alleged: (PSI) suffered from systematic quality of care and patient safety problems. Naturally, investment firms jumped on the opportunity. Acadia Healthcare will pay $17 million in what the Department of Justice says is the largest health care fraud settlement in the history of West Virginia. 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. Those who purchased Acadia Healthcare Company Inc (NASDAQ: ACHC) shares should contact the Shareholders Foundation, Inc. System et al v. PSI, Filed 9/21/2009). Last year, the location's top physician since 2012 resigned, citing the decline of the facility under Acadia. Carpenter didnt respond further. 1. Courtesy Acadia Healthcare, Cap Table: 2015 ACHC Proxy Statement (pp. Government inspection documents reported allegations of sexual harassment and physical abuse. Not only government and Joint Commission oversight but also criminal prosecutions over patient restraint and other deaths and sexual abuse of patients are seriously lacking. 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. 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. In 2015, American Addiction Centers ((AAC)) was charged with murder in California the first-ever corporation to be charged with second-degree murder. Acadia owns seven treatment centers in West Virginia, in Beckley, Charleston, Clarksburg, Huntington, Parkersburg, Wheeling and Williamson. 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. Yet cost-cutting has persisted. Acadia bought the facility in 2012 and since them three families have sued over injuries to loved ones who were patients there. Authorities said they are looking into complaints of abuse, over-druggingand fraud at the facility owned by Acadia Healthcare. I wrote this article myself, and it expresses my own opinions.