Ongoing fraudulent practices at Acadia Healthcare

The allegations against Acadia Healthcare, which operates numerous psychiatric facilities across the United States, focus on actions taken between 2014 and 2017. During this period, the company reportedly admitted patients who were ineligible for inpatient treatment and extended their stays unnecessarily. Investigations have revealed that inadequate staffing and supervision may have contributed to serious patient harm, including suicides and assaults. Following the disclosure of these practices, Acadia has faced scrutiny from multiple federal agencies, including the U.S. Attorney’s Office and the Securities and Exchange Commission. Reports from former employees have indicated ongoing issues, suggesting that many of the problematic practices identified in the past have not been fully resolved, prompting further investigations into the company’s operations.

Settlement and Ongoing Investigations

On September 27, 2024, Acadia agreed to a settlement of $19.85 million to resolve allegations of submitting false claims to Medicare and Medicaid for services that were not medically necessary. This settlement was a response to claims that Acadia knowingly violated the False Claims Act by improperly billing for inpatient services. In addition to the settlement, Acadia is currently under investigation for its patient admissions processes, billing practices, and the length of patient stays, raising further concerns about its compliance with federal regulations.

Employee Testimonies and Media Reports

Former employees from facilities in Georgia and Missouri have reported feeling pressured to refer patients to Acadia hospitals and to categorize patients as uncooperative to justify extended stays. These testimonies have prompted inquiries from federal investigators about the company’s operational practices. A New York Times report published in September 2024 indicated that many of the illicit practices identified during the earlier investigation may still be occurring, reinforcing the need for ongoing scrutiny of Acadia’s operations.

Company Response and Future Actions

In light of these allegations and investigations, Acadia Healthcare has stated that it is cooperating fully with authorities. The company has also announced plans to invest $100 million in technology aimed at improving patient and staff safety, as well as enhancing care coordination. This investment includes updates to electronic medical records systems and other technological innovations designed to increase transparency and oversight across its facilities. However, the effectiveness of these measures in addressing the ongoing concerns remains to be seen.