acadia healthcare scandal acadia healthcare scandal

Acadia operates a network 246 behavioral healthcare facilities with approximately 10,800 beds in 39 states and Puerto Rico. 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. More nurses are leaving the profession than joining, leaving Acadia without sufficient staff to care for its UK patients. Good morning, and welcome to Acadia's Fourth Quarter 2022 Conference Call. 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. Prior to the act, insurers could require people to pay a greater share of the cost associated with mental health and substance abuse. Three months after the MHPAEA went into effect, Obamacare was signed into law. 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. Revocation seems rare and in the case of repeated allegations against facilities in the behavioral health industry questions whether this contributes to patients health and lives being kept at risk. This is the embodiment of the operational and financial abuses that have permeated this industry. Acadia is a leading provider of behavioral healthcare services. Victims of Acadia Healthcare. 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. They could eliminate some of those cases, but they could also find evidence of more criminal activity, Pihera said. Detectives said they believe they will find evidence of dozens of crimes. Contact. Please disable your ad-blocker and refresh. Courtesy Acadia Healthcare, Cap Table: 2013 ACHC Proxy Statement (pp. 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. 1. labor relations violation. This most recent quarter (Q3, 2018), they missed earnings by $.10. Cash from operations growth has dried up. 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. Earlier this year in California, Christopher Bathum, the owner of a facility, was convicted of multiple sexual assaults of patients. Assistant U.S. Pursuant to the settlement agreement, Acadia will pay $17 million to resolve allegations of a billing scheme that defrauded Medicaid of $8.5 million. The company expects to add more than 800 beds to current and new facilities in 2018. Investigations by health inspectors from the Centers for Medicare and Medicaid Services revealed over 50 pages of violations ranging from unqualified staff to infection control deficiencies, patient rights, and maintenance issues. 2023 Cox Media Group. It was called the National Mental Health Parity Act (MHPA). 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. 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. He said: Ultimately, it became a matter of principle over passion, and the former was non-negotiable for me. 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. By CCHR International 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. The best natural target was opioid addiction, with its high demand for substance abuse treatment services. To combat these financial challenges, Acadia has purportedly tried: reputable clinicians and physicians don't want to work with Acadia. New Baltimore, MI, Harbor Oaks Hospital. Compared to the closing price on Monday 02/27/2023 on NAS of $80.49, this is a drop of 3.42%. Patient acceptance restrictions. Florida State Attorney Dave Aronberg said: This is an entire industry that's been corrupted by easy money. The Capitol Forum found that between January 2014 and September 2018, the facility had been investigated dozens of times after reports of poor care and dangerous conditions. The Commission bases its accreditation on surveys paid for by the hospitals. Acadia struggles with severe seasonality in the summer months. Then three more in 2019. 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." Penn holds a B.A. Click here to find out more , Insider Trading Volume Since 2015. However, one has already happened since then and another is expected that is not accounted for by Acadia. 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. In the shareholder earnings call for Q2, Joey Jacobs said they were expecting one more interest rate hike by the end of the year. 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. As a result, Sierra Tucson has been charged with several wrongful deaths. The company rampantly and openly commits insurance fraud. Debbie Osteen is Former Chief Executive Officer at Acadia Healthcare. 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(CRC), operates seven drug treatment centers in West Virginia. 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. If any of the above happens, it will likely cause Mizuho (which currently has a $60 price target) and Wells Fargo to downgrade the stock as they have in the past, causing a further sell-off. KARK reported that: Ascent Children's Health Services CEO Dan Sullivan admits some employees didn't follow correct protocol and were fired. Source: Chicagosplash.com. The settlement agreement can be found 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. Courtesy: Acadia Healthcare, Cap Table: 2018 ACHC Proxy Statement (pp. Lemont, IL, Timberline Knolls. Moncton has out-world-classed Halifax by paying a secret amount of money to have AC/DC perform at Magnetic Hill this summer ("summer" means "September" in New Brunswick). Medicaid regulations and policies specifically prohibited Acadias treatment centers from seeking reimbursement for moderate and complex urine and blood testing which they were not certified to perform, and did not, in fact, perform. 6100 Tower . 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. Bei der Nutzung unserer Websites und Apps verwenden wir, unsere Websites und Apps fr Sie bereitzustellen, Nutzer zu authentifizieren, Sicherheitsmanahmen anzuwenden und Spam und Missbrauch zu verhindern, und, Ihre Nutzung unserer Websites und Apps zu messen, personalisierte Werbung und Inhalte auf der Grundlage von Interessenprofilen anzuzeigen, die Effektivitt von personalisierten Anzeigen und Inhalten zu messen, sowie, unsere Produkte und Dienstleistungen zu entwickeln und zu verbessern. It has been saddled with $3.7 billion in debt, unable to pay. Twitter:@JELagasse In 2005, Waud Capital Partners, founded by Chicago's Reeve B. Waud created a new behavioral healthcare company called Acadia Healthcare. Chris Hunter. Staff were hurting children. It has been saddled with $3.7 billion in debt, unable to pay it down since Q1 2017. Beautiful vistas. 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. In a one-week period in 2017, two suicides occurred at the facility. Both he and his partner were convicted of financial crimes as well. 3. Philadelphia, PA, Belmont Hospital. Sie knnen Ihre Einstellungen jederzeit ndern, indem Sie auf unseren Websites und Apps auf den Link Datenschutz-Dashboard klicken. 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.". As part of this settlement, CRC Health and Acadia Healthcare entered into a five-year corporate integrity agreement (CIA) with HHS-OIG. needed, and desperate to induce actual change, Senator Ted Kennedy and his son, Patrick, were key in adding the. The Medicaid program is primarily administered by the states, but jointly financed by federal and state funds funds ultimately originating from taxpayers. 1. Weitere Informationen ber die Verwendung Ihrer personenbezogenen Daten finden Sie in unserer Datenschutzerklrung und unserer Cookie-Richtlinie. 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. Acadia is nearing a high-risk of default, and logically, would soon be unable to continue to borrow for growth. In the two previous years, it has experienced a 20%+ drop after its Q3 earnings announcement. 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 appears to be an acceptable level of patient abuse and sexual abuse because thats the norm in the mental health industry. But, as a profit measure, it worked. Old men to stumble into Moncton. Lock February 13, 2019. 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.. When a behavioral healthcare company stops growing its business, but revenue and profit margins continue to grow, that's a problem. 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. Ending racism in healthcare often begins with medical education - and is the target of a new national project. It operates a network of over 225 facilities across the United States and Puerto Rico. As more government dollars pour into behavioral healthcare, government watchdogs are calling for the creation of a regulatory body to investigate fraud in the SUD industry. Room 257 Only Channel 2 Action News was there when detectives pulled evidence and questioned employees. Of course, for mental health; reimbursements get double-scrutiny thanks to fraud and broadly defined parameters of treatment. Oasis had been the subject of five enforcement actions and fined a mere $7,000. A Ms. Alisha Rocinek, on behalf of herself and various shareholders, sued Jacobs and the PSI Management in Federal District Court. by making a substantial payment to investors harmed by the fraud perpetrated by defendants. In terms of at the federal level, Oklahoma-based Special Agent Alan Carpenter of the FBI did respond to the original inquiry, however, nothing has been addressed in Oklahoma, or nationally, to date. 4. 21). Seeing that the 1997 law had no effect on ensuring people could get the mental health and substance use care they needed, and desperate to induce actual change, Senator Ted Kennedy and his son, Patrick, were key in adding the Mental Health Parity and Addiction Equity Act of 2008 (MHPAEA) as a rider to the Troubled Asset Relief Program (TARP). Acadia Healthcare operates 10,200 beds spanning 230 facilities in 41 American states and territories. Editor's note: Seeking Alpha is proud to welcome Penn Little as a new contributor. By using this website, you accept the terms of our Visitor Agreement and Privacy Policy, and understand your options regarding Ad Choices. 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. 10. Many have been subjected to buyouts and the large checks that accompany them. Source: Complaint in US District Court (Rocinek et al v. PSI, Filed 7/20/2010). 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? 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. [5]The Senator wrote the Joint Commission, saying it appears to be unable to aggressively enforce the necessary standards on all facilities. He also cited a Wall Street Journal story about Cooley Dickinson Hospital in Northamption, Massachusetts, which was given the Gold Seal of Approval by the Joint Commission even after CMS threatened to cut it off over safety problems which led to preventable patient deaths. psychcrime@psychcrime.org Sexual assault against patients is alleged to have occurred as well. Acadia does not care about the well-being of their patients or their employees. I. The penalty totals are adjusted to account for the fact that the . While it says that it is keeping debt high to make additional acquisitions, those acquisitions have not happened. Huntington:(304) 529-5799. 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. Courtesy: Acadia Healthcare, ACHC: Insider Holdings Decline Since 2015. 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. They are up more than 20 percent so far this year. 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. Beckley, WV25801, 845 Fifth Avenue This, the day after the NY Post reported that Kohlberg Kravis Roberts and Co. Inc. (NYSE: KKR) was looking to acquire Acadia. The San Diego Lab performed the testing and invoiced Acadias treatment centers for the services, and did so at the request of the treatment centers. A lock ( Acadia Healthcare's behavioral health treatment facilities specialize in helping children, teenagers, and adults who are suffering from mental health disorders and/or alcohol and drug addiction. 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. In 2017, the majority of Acadia's US revenue came from Medicaid and Medicare contracts. More than 50 local police officers raided a local mental health hospital. Operating cash flows for 2023 are expected to be $450-$500 million , suggesting a rise . 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.. "Defendants are liable for: (1) making false statements; or (II) failing to disclose adverse facts known to them about Psychiatric Solutions. Acadia Healthcare came under further scrutiny in Oklahoma where it owns Rolling Hills Hospital. Acadia has experienced almost no bed growth in 2018. 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 It's even harder to find an intrinsic value above $0. Nothing was locked up that could be broken and used for self-harm. (Page 6, Paragraph 1 of the complaint. The hospital didnt investigate to determine if the reports were legitimate, according to inspection reports. Insider ownership has plummeted over the last three years, from 30% to now less than 2.5% (See the ACHC Proxy Statement Extractions below, starting with 2012). If an organization operates unethically, the organization moves further away from its ethical code and widens the Integrity Gap.[2] Clearly, this advice was not taken because for-profit behavioral hospital chains today have not just widened the gap, theyve created a gigantic chasm. In the United Kingdom, the majority of Acadia's revenue comes from its healthcare facilities, and virtually all of the payment received is from the National Health Service. In 2018, improper payments alonewhich include things like payment for non-covered services or for services that were billed but not providedtotaledmore than $40 billion nationally according to the Government Accountability Office. Fort Myers, FL, Park Royal Hospital. The various questions for Acadia surrounded the accounting discrepancies, the insider stock sell-off, and the widespread alleged misconduct. 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. Additional disclosure: All Relevant Litigation Discovered to Date Can Be Found at:https://www.dropbox.com/sh/edipup27v9mbio5/AAAgDjlsvuwW-Kp04PG6ew5va?dl=0. The other lawsuit, which involves an unnamed minor, alleges denial of critical emergency medical care, as well as multiple sexual assaults against children. 32, 4 Feb., 2019, [8] Patients at Rolling Hills Hospital in Ada suffer broken bones, head injuries, NewsOK, 7 Jan 2019, https://newsok.com/article/5619558/patients-at-rolling-hills-hospital-suffer-broken-bones-head-injuries, [9] New Allegations Of Elder/Veteran Abuse And Parliaments Autism Debate Could Further Jeopardize Top Line For Acadia Healthcare, Seeking Alpha, 31 Jan. 2019, https://seekingalpha.com/article/4237195-new-allegations-elder-veteran-abuse-parliaments-autism-debate-jeopardize-top-line-acadia, [10] http://www.caringfamilysolutions.org/; https://npidb.org/organizations/behavioral_health/clinical_1041c0700x/1548686322.aspx, [11] http://www.hartfordbusiness.com/article/20190118/NEWHAVENBIZ/190119899/behavioral-health-provider-to-pay-100k-over-false-claim-charges, CCHR INTERNATIONAL 52 YEARS OF PROTECTING HUMAN RIGHTS, 2023 Citizens Commission on Human Rights International. Acadia's books do not look good. GWINNETT COUNTY, Ga. More than 50 local police officers raided a local mental health hospital. In Gwinnett County, police confirm they're focusing on 51 former patients. 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. 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. We collaborate and research together, as many readers know, however, are expressing our own unique investment viewpoints. He holds an M.B.A. in Finance from the University of Arizona's Eller College of Management in Tucson, AZ.Penn founded the Wilkinson-Dorrell Scholarship Program at The University of Oklahoma Foundation. Notes : Parent-subsidiary linkages are based on relationships current as of the latest revision listed in the Update Log, which may vary from what was the case when a violation occurred. Gretchen Hommrich. Medicaid fraud is not a victimless crime. GWINNETT COUNTY, Ga. More than 50 local police officers raided a local mental health hospital. Things dont seem to be improving for the Franklin, TN-based healthcare provider; Acadia Healthcare Company, Inc. (ACHC). The settlement is about double the payment that Acadia received from Medicaid. 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. The company's Atmosphere is good, the employers care about thier employee's wellbeing, and hours are flexible. 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. It appears all the employees are cooperative, they all understand why we are here, Pihera said. Behavioral Healthcare M&A Deal Volume. They also increased cost sharing through higher deductibles, co-pays, and out-of-pocket payments. 5. This station is part of Cox Media Group Television. 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. He hasnt been able to stand since he left Rolling Hills in January 2018, Marsha said. However, Acadias West Virginia treatment centers then billed West Virginia Medicaid for the urine and blood testing performed by the San Diego Lab, as though the testing had been performed by the treatment centers. Source: YCharts. By offering medication-assisted. 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). Jacobs said they have chosen not to change their loans to fixed-rate instruments because they found that financially inviable for the company. However, when they outperformed at Q4 2017, Waud dumped stock after the release of earnings in February. Both facilities are still open. Is this happening to you frequently? Since mid-August 2015, insider holdings have dwindled from 30% to less than 1%. 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]. 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. Website: www.acadiahealthcare.com Headquarters: Franklin, TN Size: 10000+ Employees Founded: 2005 Type: Company - Public (ACHC) Industry: Health Care Services & Hospitals Revenue: $1 to $5 billion (USD) Competitors: Universal Health Services, Inc., HCA Healthcare, Summit Behavioral Healthcare (OH) Create Comparison System et al v. PSI, Filed 9/21/2009). 2. There has been speculation of a private equity buyout of the company; however, this has not been verified. Fix the multitude of issues with the current facilities and get a solid foundation before trying to build higher. I have no business relationship with any company whose stock is mentioned in this article.