Veterans Dept. Investigating Acadia Healthcare for Insurance Fraud
The New York Times
Several federal agencies are investigating whether the large chain of psychiatric hospitals held patients without medical justification.
The Veterans Affairs Department is investigating whether Acadia Healthcare, one of the country’s largest chains of psychiatric hospitals, is defrauding government health insurance programs by holding patients longer than is medically necessary, according to three people with knowledge of the inquiry.
The investigation, led by the agency’s inspector general, comes three weeks after Acadia told investors that it was facing scrutiny for its admissions practices from several other federal investigators, including prosecutors in Manhattan and a grand jury in Missouri. The company, which relies on government insurance programs like Medicare and Medicaid for much of its revenue, said it was also expecting to receive inquiries from the Securities and Exchange Commission and other agencies.
Acadia told investors that it was “fully cooperating with authorities and, at this time, cannot speculate on whether the outcome of these investigations will have any impact on its business or operations.” The company has denied claims that it was improperly holding patients and has said that all decisions about care are made by licensed medical professionals.
The Veterans Affairs Department declined to comment.
The New York Times reported in September that Acadia was holding patients against their will in ways that appeared to violate state laws. The Times reported that some patients arrived at emergency rooms seeking routine mental health care but then were sent to Acadia facilities and locked in. The company’s employees often held patients until their insurance coverage ran out, even when there was no medical justification.
The Times article was based on official complaints, court records and interviews with patients, as well as more than 50 current and former Acadia employees.
