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. In Gwinnett County, police confirm they're focusing on 51 former patients. Again, this is assuming they'll collect all billed revenue. [3] https://www.jointcommission.org/facts_about_the_joint_commission/; https://www.jointcommission.org/benefits_of_joint_commission_accreditation/. Compare. 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. The company's shares (Ticker: ACHC). One is located on Medlock Bridge Road and the other is on One Technology Parkway. As a leading provider of behavioral healthcare services in the United States and Puerto Rico, Acadia Healthcare operates 246 treatment facilities across 39 states. Again, the leadership has, for the most part, cashed in. I should know more later this week. The low-interest rate environment made borrowing extremely cheap. Acadia Healthcare Company, Inc. today announced financial results for the fourth quarter and year ended December 31, 2022. Meanwhile, Acadia has fought to continue its rapid growth. Attorney General Sessions has since resigned. Behavioral Healthcare M&A Deal Volume. Lastly, contact was made with Acadia Healthcare and Waud Capital Partners via telephone and email. 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. Of the $17 million settlement, nearly $2.2 million will be paid directly to the State of West Virginia. It closed all of the loopholes insurers used to circumvent the prior Mental Health Parity Act of 1997 (MHPA). 15). You must be a. Channel 2's Tony Thomas has been investigating Lakeview for months. 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. 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. On February 28, 2018, The Attorney General's office was notified upon first discovery of potentially harmful misconduct at Acadia. Source: YCharts. 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. 6. workplace safety or health violation. 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. 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. provider visits or the number of days they would cover for mental health patients. The charges were dismissed. There were broken vents that kids could cut themselves with. Additionally, the provisions it did have were woefully ineffective. What we found most alarming were the instances of restraint and seclusion violations where adolescents were left unmonitored in seclusion rooms. 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. This was a result of his recovery from after struggling with behavioral health disorders and the consequences of his maladaptive behaviors resulting from unresolved trauma.Succumbing to these taught what he says are "the best lessons I ever learned." System et al v. PSI, Filed 9/21/2009). Multiple allegations of sexual assault of a patient exists, including McCardle v Seven Hills/Acadia, in which a patient exposes himself to a young woman. 1. labor relations violation. 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. Acadia does not care about the well-being of their patients or their employees. on Monday offered up sales results and forecasts that beat estimates, but a weaker showing for profits. Fix the multitude of issues with the current facilities and get a solid foundation before trying to build higher. By using this website, you accept the terms of our Visitor Agreement and Privacy Policy, and understand your options regarding Ad Choices. 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. Is this happening to you frequently? 7, No. The women's substance abuse and eating disorder treatment facility is one for which Wauds company paid $90 million for in 2012. 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. Henderson, NV, Seven Hills Hospital. Then three more in 2019. I am proud of the work of my office and that of our partners to ensure the end of this multi-million dollar scheme. 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. No clear federal definition exists for what constitutes a SUD center, so some entrepreneurs started opening centers in strip malls, filling them with beds, signing users up often through unethical methods. They also increased cost sharing through higher deductibles, co-pays, and out-of-pocket payments. According to the Acadia website, this facility is: located on 43 tranquil acres in the suburbs of Chicago. The best natural target was opioid addiction, with its high demand for substance abuse treatment services. 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. This is a message of deterrence to other would-be fraudsters.. Little time off, no office time flexibility, constant urgency, lack of communication (from corporate down to the facility level ESPECIALLY at the facility level), and underpaying employees are the opposite of what this company was built on. Apr 30 2018. Assistant U.S. 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.. Following allegations of fraudulent Medicaid claims, Acadia Healthcare has agreed to pay a $17 million settlement, according to a recent press release by the Department of Justice. 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. Mental Health Parity and Addiction Equity Act of 2008, rider to the Troubled Asset Relief Program (TARP), resorted to extreme exploitation of minimal regulation via patient brokering, massive gold rush, according to Bloomberg News, misleading or dangerous living conditions. But, it has added a grand total of 152 beds (out of more than 17,000 total) and that marginal growth has been off of deals struck in 2016. Both facilities are still open. Each of Acadias West Virginia treatment centers is certified by the Centers for Medicare and Medicaid Services (CMS) to perform uncomplicated waived laboratory testing only. GWINNETT COUNTY, Ga. More than 50 local police officers raided a local mental health hospital. U.S. Attorney's Office, Southern District of West Virginia, United States Attorney Announces $17 Million Healthcare Fraud Settlement, Floridas Lakeland Regional Medical Center Agrees to Pay $4 Million to Settle Common Law Allegations for Impermissible Medicaid Donations, Digital Healthcare Platform Ordered to Pay Civil Penalties and Take Corrective Action for Unauthorized Disclosure of Personal Health Information, U.S. Attorneys Office Collects $3,418,522.70 in Civil and Criminal Actions in Fiscal Year 2022. Insurers instantly discovered ways to circumvent it. United States Attorney Mike Stuart announced the formation of ARREST in February 2019. Government inspection documents reported allegations of sexual harassment and physical abuse. Source: YCharts. I am not receiving compensation for it. 20,000 Employees We employ professionals who are dedicated to developing innovative ways to deliver individualized behavioral health treatment. He hasnt been able to stand since he left Rolling Hills in January 2018, Marsha said. LARGEST HEALTHCARE FRAUD SETTLEMENT IN WEST VIRGINIA HISTORY. Source: Nashville Post. 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]. 2 min read PHILADELPHIA, March 23, 2021 (GLOBE NEWSWIRE) -- Kaskela Law LLC announces that it is investigating Acadia Healthcare Company, Inc. (NASDAQ: ACHC). 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. The company was founded in January 2005, and is headquartered in Franklin, Tennessee. Acadia Healthcare is an American provider of behavioral healthcare services. Philadelphia, PA, Belmont Hospital. Revenue totaled $675.3 million, an increase of 13.8% over the fourth . Of course, for mental health; reimbursements get double-scrutiny thanks to fraud and broadly defined parameters of treatment. 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. Required insurers to cover substance abuse treatment without exception on an out-of-network basis (Out-of-network, meaning "PPO Plans" or the type of revenue from which most publicly traded companies or institutional dollars seek to derive their profit). 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. A .gov website belongs to an official government organization in the United States. Officials brought their own truck and van for all the evidence they expected to find. Another suit, from 2015, alleges child neglect. As a result, reputable clinicians are willing to refer to Acadia less and less. Click here to find out more , Insider Trading Volume Since 2015. At Acadia Healthcare, our commitment to integrity and compassionate care is realized each day by our highly qualified staff. This epidemic in the United States exploded throughout the mid-2010s, skyrocketing the number of Substance Use Disorder (SUD) centers. 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. Lemont, IL, Timberline Knolls. 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.. Acadia Healthcare stock price target raised to $50 from $35 at Mizuho. In effect, the three combined laws were a mandate for the $3 trillion insurance industry to pay out unlimited reimbursements for a lifetime disease with no cost-effective solution. 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. Operating cash flows for 2023 are expected to be $450-$500 million , suggesting a rise . By CCHR International Many patients and families are alleging various incidents of misconduct, which include wrongful death, sexual assault, and abuse/neglect of patients, some of whom are under 18. 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. Acadia offers an unhealthy work environment, terrible management that is rarely on site, and unreasonable expectations. Medicare/Medicaid payments are critical for these predominantly high-debt firms to meet rising interest expenses. 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. 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. 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. 5. 2. Waud also has a new house, widely known as Maine's "largest mansion.". In 2005, Waud Capital Partners, founded by Chicago's Reeve B. Waud created a new behavioral healthcare company called Acadia Healthcare. Please. 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." At March 31, 2020, Acadia operated a network of 588 behavioral healthcare facilities with approximately 18,200 beds in 40. He sold the company in 2017 to a global private equity firm.Penn serves as a contributor for Forbes as well. While at Crestview, Penn also co-founded the Shatter Our Silence Initiative, to combat teen suicide in Northern Illinois.Penn loves to spend time with his nieces, Sacra and Emory (both 3) and nephew, Greer (1), as well as fishing in Kona, HI for Blue Marlin. Acadia Healthcare Company, Inc. ACHC has started the work on building a new 96-bed inpatient behavioral health facility named Geisinger Behavioral Health Center Northeast in Pennsylvania.. 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. Please disable your ad-blocker and refresh. These are but an example of abuses that are prevalent in the for-profit psychiatric/behavioral system prompting CCHRs recent report, Child Rapes, Suicides, Deaths and Hundreds of Millions of Dollars in Healthcare Fraud in the For-Profit Behavioral Industry, calling for greater government oversight and stronger penalties for violations of patient care, rights and insurance. While it says that it is keeping debt high to make additional acquisitions, those acquisitions have not happened. With $3.7 billion in debt, Acadia is poorly positioned in a rising interest rate climate. A hospital, now owned by UHS, hasnt appeared to change much. 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. 4. Official websites use .gov Staff were hurting children. The American Addiction Centers incident led to increased oversight into the industry and increasing regulation. 23. The Beginning: A Legislative Triple-Threat. This settlement is just one example of the great results from our collaboration and hopefully it will have a positive effect on the people of West Virginia, Schoeman added. [5] UHS in the hot seat: Senator calls for federal probe over patient care concerns at top-performing hospital FierceHealthcare, 25 Apr. Learn about careers at Cox Media Group. Courtesy: Acadia Healthcare, ACHC: Insider Holdings Decline Since 2015. 1. Acadia is nearing a high-risk of default, and logically, would soon be unable to continue to borrow for growth. Acadia is a leading provider of behavioral healthcare services. This station is part of Cox Media Group Television. Once the law is signed by the president, at a ceremony scheduled for Wednesday, federal prosecutors will finally be able to go after patient brokers and the providers who pay them. Sexual assault against patients is alleged to have occurred as well. She had bruising all over, Tipton told Thomas. It angers me.. The settlement resolves a lawsuit that accused the Franklin-based behavioral health care company of defrauding Medicaid of $8.5 million through a lab testing scheme in seven of its drug addiction treatment centers in West Virginia. Acadia's books do not look good. There was a child that was escorted to the hospital because he was punched in the face by a staff member. $8.5 million in Medicaid fraud means $8.5 million in fraud to the taxpayers. WEST BLOOMFIELD, Mich., September 27, 2022 -- ( BUSINESS WIRE )--Henry Ford Health, one of the nation's premier academic and integrated health systems, and Acadia Healthcare, the nation's. They care only about profit. 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. In the two previous years, it has experienced a 20%+ drop after its Q3 earnings announcement. Acadia Healthcare CEO Joey Jacobs. And it will take external-to-the-industry government and law enforcement response to close that gap. Acadia provides behavioral health and addiction services to its patients in a variety of settings, including inpatient psychiatric hospitals, residential treatment centers, outpatient clinics and therapeutic school-based programs. ACHC expects the tax rate to be 25-26%. In the last two years, the number of nurse vacancies has risen by 17%. Victims of Acadia Healthcare Debbie Osteen is Former Chief Executive Officer at Acadia Healthcare. Our network of treatment facilities offers multiple levels of care for various behavioral health and substance use disorders. It has been saddled with $3.7 billion in debt, unable to pay. 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. Acadia has been unable to raise any additional funds, either through financing or through additional stock placement, since Q2 2016. As part of this settlement, CRC Health and Acadia Healthcare entered into a five-year corporate integrity agreement (CIA) with HHS-OIG. Another law, passed in 1997, had tried to achieve something similar. The company expects to add more than 800 beds to current and new facilities in 2018. On January 20, 2021, the Honorable William L. Campbell, Jr. of the United States District Court for the Middle District of Tennessee denied defendants' motion to dismiss in St. Clair County Employees' Retirement System v. Acadia Healthcare Company, Inc., a case alleging Acadia and certain of its officers violated 10(b) and 20(a) of the Securities Exchange Act of 1934. 5. 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. This corporation is taking advantage of the most vulnerable people in our. 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. Source: Marketwatch. Police spent hours searching and seizing patient records and computers, as well as interviewing workers at the administrative office. The Oklahoman also points to the Oklahoma State Department of Health, which licenses hospitals and conducts inspections on behalf of CMS, rarely suspending or revoking hospital licenses.[8]. Overall rating. This is a very large-scale investigation, said Gwinnett County Police Spokesperson Michele Pihera. Acadia has experienced almost no bed growth in 2018. 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 Acadia, acting through its subsidiary, CRC Health, L.L.C. Thomas flew to Arkansas and New Mexico this fall, listening to whistleblowers at other company sites. Ever, and presently chairs the Illinois State Police Merit Board, Patient was a minor at the time of the intimacies, Patient had experienced incest or other child sex abuse, Patient had experienced rape prior to intimacies with therapist, Patient required hospitalization considered to be at least partially a result of the intimacies, Patient achieved complete recovery from any harmful effects of intimacies, Patient filed formal (e.g., licensing, malpractice) complaint. CBC TV in Fredericton wanted to talk to me about concerts and government secrecy yesterday, so I took the bus out to Mumford and . 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. Many have been subjected to buyouts and the large checks that accompany them. 16). 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. 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). You have permission to edit this article. Two lawsuits have been filed against the facility this year. https://www.acadiahealthcare.com. 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 Healthcare shares fall on mixed-bag results, forecasts. For months, former patients and their families have complained of unexplained injuries after leaving Lakeview. Courtesy: Acadia Healthcare, Cap Table: 2014 ACHC Proxy Statement (pp. The Mental Health Watchdog I will advise when I have more information." While many healthcare providers believe that improving the patient financial experience is a critical step for their organization, few have done so successfully. Authorities said they are looking into complaints of abuse, over-druggingand fraud at the facility owned by Acadia Healthcare. Their employee turnover is very high. More than 50 local police officers raided a local mental health hospital. from The University of Oklahoma in Norman, Oklahoma, where he studied Economics. Seasonality. Beautiful vistas. This is the embodiment of the operational and financial abuses that have permeated this industry. Net cash provided by operating activities for the first half of 2018 was $217 million. It has been saddled with $3.7 billion in debt, unable to pay it down since Q1 2017. 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 The hospital didnt investigate to determine if the reports were legitimate, according to inspection reports. Twitter:@JELagasse 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.. It's easy to become a Seeking Alpha contributor and earn money for your best investment ideas. Lock In this case, every dime in false billings was doubled for a total settlement that represents twice the harm caused. An official website of the United States government. Inability to Expand. The Drug Enforcement Administration routinely works in partnership with other agencies to fight the opioid crisis, said Justin Schoeman, Acting Assistant Special Agent in-Charge of DEAs Charleston District Office, which covers West Virginia. 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. 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.