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. As of September 30, 2021, Acadia operated a network of 230 behavioral healthcare facilities with approximately 10,200 beds in 40 states and Puerto Rico. According to a national survey, abuse in this industry by staff is much more common than many would think; some of the data from 958 respondents in California is below: Source: https://kspope.com/sexiss/sex2.php. 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. Two years ago, Brown Consulting Behavioral Services warned that with increased attention of the Department of Health and Human Services (DHS) and the Office of Inspector General (OIG), Behavioral Healthcare leaders, like other healthcare leaders, must re-examine their internal operations and practices to protect their organizations from fraud and abuse. The July 21, 2017 article spoke of an Integrity Gap, referring to the distance between day-to-day conduct and the ethical standards of the organization. This epidemic in the United States exploded throughout the mid-2010s, skyrocketing the number of Substance Use Disorder (SUD) centers. 7, No. ET by Tomi Kilgore. I have served in many aspects of the oft-misunderstood, exploited, but also necessary field for over seven years. Interest rates. Weitere Informationen ber die Verwendung Ihrer personenbezogenen Daten finden Sie in unserer Datenschutzerklrung und unserer Cookie-Richtlinie. 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. Active contributors also get free access to the SA PRO archive. 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. Medicaid fraud is not a victimless crime. 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. The company expects to add more than 800 beds to current and new facilities in 2018. 6100 Tower . Again, the leadership has, for the most part, cashed in. Acadia will likely be forced to impair goodwill due to Brexit putting downward pressure on Priory Group. Source: Nashville Post. Acadia Healthcare (ACHC) Q4 Earnings Miss on Rising Costs In the two previous years, it has experienced a 20%+ drop after its Q3 earnings announcement. The Latest Analyst Ratings for Acadia Healthcare Co Only Channel 2 Action News was there when detectives pulled evidence and questioned employees.. 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. Legislators from Florida are flabbergasted by this issue, and, according to ABC News: The problem of insurance fraud and patient abuse is so bad in the Sunshine State that it's been nicknamed 'The Florida Shuffle,' where patients are lured here for treatment, then go from one treatment center to another until their insurance benefits run out. The company was founded in January 2005, and is headquartered in Franklin, Tennessee. Acadia Healthcare shares fall on mixed-bag results, forecasts CRC Health operates its subsidiary, Acadia Healthcare, located in Tennessee with treatment centers in West Virginia. Our human resources department helps ensure that our teams consist of the very finest candidates, and they assist our employees in making the most of their Acadia experience. In a one-week period in 2017, two suicides occurred at the facility. Three months after the MHPAEA went into effect, Obamacare was signed into law. The ADHS website lists facility enforcement actions dating back three years. Compared to the closing price on Monday 02/27/2023 on NAS of $80.49, this is a drop of 3.42%. Acadia's books do not look good. 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. Insurers could also limit the Mental Health (MH) and Substance Use Dependence (SUD) services offered in benefit packages. The American Hospital Association and American Medical Association are among the 11 organizations signing the letter. Acadia Healthcare Agrees to $17 Million Settlement Regarding Fraudulent Acadia is 98% owned by institutions. ; https://www.jointcommission.org/about/jointcommissionfaqs.aspx#2323. 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 company's shares (Ticker: ACHC) closed at $32.60 Tuesday, down nearly four percent from Monday. A separate claim, filed in 2009, names the same defendants. Acadia Healthcare Company, Inc. provides behavioral healthcare services in the United 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. To combat these financial challenges, Acadia has purportedly tried: reputable clinicians and physicians don't want to work with Acadia. The entire industry, which was previously a cash-pay or a charitably-supported field filled with legitimate actors, became a massive gold rush, according to Bloomberg News. $8.5 million in Medicaid fraud means $8.5 million in fraud to the taxpayers. Acadia was involved in approximately zero of those transactions. Acadia Healthcare Company (Nasdaq:ACHC) - Simply Wall St Ending racism in healthcare often begins with medical education - and is the target of a new national project. 27). It operates a network of over 225 facilities across the United States and Puerto Rico. Another suit, from 2015, alleges child neglect. 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). 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 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]. Police spent hours searching and seizing patient records and computers, as well as interviewing workers at the administrative office. 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 . 2 min read PHILADELPHIA, March 23, 2021 (GLOBE NEWSWIRE) -- Kaskela Law LLC announces that it is investigating Acadia Healthcare Company, Inc. (NASDAQ: ACHC). Of the $17 million settlement, nearly $2.2 million will be paid directly to the State of West Virginia. Inequities can be found in every facet of the industry, but targeting medical students and residents can help stem the tide. 10. 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." It's easy to become a Seeking Alpha contributor and earn money for your best investment ideas. "Defendants are liable for: (1) making false statements; or (II) failing to disclose adverse facts known to them about Psychiatric Solutions. However, when they outperformed at Q4 2017, Waud dumped stock after the release of earnings in February. The Mental Health Watchdog With $3.7 billion in debt, Acadia is poorly positioned in a rising interest rate climate. All they had to do was limit the number of provider visits or the number of days they would cover for mental health patients. I'll first provide you with . Today, regulations have finally set in in some states; costs are cut so far that treatment centers often have misleading or dangerous living conditions, and fail to provide individuals with the treatment they desperately need. 27). Acadia has been unable to raise any additional funds, either through financing or through additional stock placement, since Q2 2016. Medicaid, induced by the claims submitted by Acadias treatment centers, paid the treatment centers a substantially higher amount than the San Diego Lab charged to actually perform the testing. Acadia has been unable to hire and retain professional personnel. 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. https://www.acadiahealthcare.com. While it says that it is keeping debt high to make additional acquisitions, those acquisitions have not happened. by making a substantial payment to investors harmed by the fraud perpetrated by defendants. Acadia Healthcare Co Inc ACHC Stock Quote 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. Source: Y Charts, Cap Table: 2016 ACHC Proxy Statement (pp. [3], The information The Capitol Forum found further raises concerns about the Joint Commission. I/we have no positions in any stocks mentioned, but may initiate a short position in ACHC, UHS, AAC over the next 72 hours. GWINNETT COUNTY, Ga. More than 50 local police officers raided a local mental health hospital. 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.. According to the Acadia website, this facility is: located on 43 tranquil acres in the suburbs of Chicago. 17). An attempt was made to notify Tom Graber of the Oklahoma Attorney Generals office in July of 2018, hoping to implore them to investigate, as well as to gather commentary for this account. The PsychCrime Database - PsychCrime.org era at Psychiatric Solutions. Pursuant to the settlement agreement, Acadia will pay $17 million to resolve allegations of a billing scheme that defrauded Medicaid of $8.5 million. I was made aware that the Oklahoma Department of Human Services apparently ordered the removal of all ODHS children from the facility. Last year, the location's top physician since 2012 resigned, citing the decline of the facility under Acadia. Medicaid fraud cost states billions of dollars every year, diverting funds that could otherwise be used for legitimate health care services. According to the Archer complaint, there was no supervision or security present at the time of the incident due to the understaffed personnel. Start Your Review of Acadia Healthcare. Old men to stumble into Moncton. Acadia Healthcare Careers When state inspectors visited in November of 2017, they declared a state of imminent danger. Klicken Sie auf Alle ablehnen, wenn Sie nicht mchten, dass wir und unsere Partner Cookies und personenbezogene Daten fr diese zustzlichen Zwecke verwenden. An analyst asked Joey about that at the end of Q2: Are you comfortable with your assumptions going into the summer months?. Courtesy: Acadia Healthcare. Thomas flew to Arkansas and New Mexico this fall, listening to whistleblowers at other company sites. Astonishingly, in their time since becoming publicly traded, ACHC press release on Q2 earnings from 2018, ACHC presentation Wells Fargo Healthcare Conference 9/2018. on Monday offered up sales results and forecasts that beat estimates, but a weaker showing for profits. Acadia bought the facility in 2012 and since them three families have sued over injuries to loved ones who were patients there. Interest expenses are anticipated to be $80-$85 million for 2023. This is reminiscent of Q2 2018 earnings, when just days before a shy miss of analyst estimates, Waud dumped stock as well. Twitter:@JELagasse Oversight. Its stock plummeted on August 4, 2015, and the sector's public players peaked, as seen above. Meet Our Staff | Acadia Healthcare Oasis had been the subject of five enforcement actions and fined a mere $7,000. psychcrime@psychcrime.org Attorney General Bonta Conditionally Approves Sale of Adventist Health Acadia owns seven treatment centers in West Virginia, in Beckley, Charleston, Clarksburg, Huntington, Parkersburg, Wheeling and Williamson. Acadia Healthcare: More Abuse, More Need for Government Oversight of [3] https://www.jointcommission.org/facts_about_the_joint_commission/; https://www.jointcommission.org/benefits_of_joint_commission_accreditation/. Acadia Healthcare is an American provider of behavioral healthcare services. Acadia Healthcare Company, Inc. (ACHC) - Yahoo! Source: Marketwatch. According to Crain's: there's been a flood of private-equity investment into the $35 billion-a-year addiction treatment industry. GWINNETT COUNTY, Ga. More than 50 local police officers raided a local mental health hospital. 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. 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 Federal inspectors back them up, saying in a report (source) that the facility is: too short-staffed to properly supervise patients. Courtesy: Acadia Healthcare, ACHC: Insider Holdings Decline Since 2015. Both facilities are still open. Coverage of this has been widespread, as seen below: Boy, 5, Found Dead After Spending 8 Hours in Van Outside Children's Health Clinic: Cops, Ascent Children's Health Services to close all facilities. The concept of treating addiction is broadly defined. Seasonality. I wrote this article myself, and it expresses my own opinions. 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. On average, how many hours do you work a day at . (Page 2, Paragraph 3 of the complaint). Acadia Healthcare Co. Inc. - MarketWatch Acadia to pay West Virginia Medicaid $17M over opioid test fraud The best natural target was opioid addiction, with its high demand for substance abuse treatment services. Acadia Healthcare | LinkedIn Source: Complaint in US District Court (Garden City Employees Ret. 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. 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. Earlier this year in California, Christopher Bathum, the owner of a facility, was convicted of multiple sexual assaults of patients. ACADIA HEALTHCARE INVESTIGATION INITIATED by Former Louisiana Attorney Beckley: (304) 253-6722 Source: The Braff Group. Yet cost-cutting has persisted. Acadia gets most of its business from referrals. Debbie Osteen is Former Chief Executive Officer at Acadia Healthcare. However, one has already happened since then and another is expected that is not accounted for by Acadia. 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. Victims of Acadia Healthcare. 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. Medicare/Medicaid contract risk. A lawsuit from one of the victims, Shannon Archer, highlights the conditions of neglect. System et al v. PSI, Filed 9/21/2009). As a result, reputable clinicians are willing to refer to Acadia less and less. for violations of Sections 14 and 20 of the Securities Exchange Act of 1934 (Exchange Act), and as a class action for breaches of fiduciary duties, unjust enrichment and rescission in connection with the proposed sale of PSI to Universal Health Services, Inc. Philadelphia, PA, Belmont Hospital. Overall rating. We collaborate and research together, as many readers know, however, are expressing our own unique investment viewpoints. At Acadia Healthcare, our commitment to integrity and compassionate care is realized each day by our highly qualified staff. 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. 16). A place to come and make your grievances against Acadia Health Care public. Gretchen Hommrich. Waud was also the nominee of Governor Bruce Rauner, R-Ill., and presently chairs the Illinois State Police Merit Board, which provides oversight, the approval of promotions, and other major decisions for the state's highest law enforcement body. The company cannot continue to acquire and grow successfully when many departments are understaffed and employees are suffering/completely maxed out on what they can do. They also increased cost sharing through higher deductibles, co-pays, and out-of-pocket payments. As a subject matter expert, these are my observations surrounding Acadia Healthcare. This settlement is the first significant result since its inception. More nurses are leaving the profession than joining, leaving Acadia without sufficient staff to care for its UK patients. Working at Arcadia Health Care: 68 Reviews | Indeed.com There appears to be an acceptable level of patient abuse and sexual abuse because thats the norm in the mental health industry. At Rolling Hills, he suffered two fractured vertebrae, a dislocated shoulder and a broken foot and never recovered. Additionally, the provisions it did have were woefully ineffective. Acadia is a leading provider of behavioral healthcare services across the United States. Learn about careers at Cox Media Group. Their employee turnover is very high. Beautiful vistas. 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. 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. 3.9. . Prosecutors say that treatment centers frequently illegally waive co-pays and deductibles, telling patients and parents that insurance will cover everything. 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." In 2005, Waud Capital Partners, founded by Chicago's Reeve B. Waud created a new behavioral healthcare company called Acadia Healthcare. 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. In this case, every dime in false billings was doubled for a total settlement that represents twice the harm caused. Acadia (Nasdaq: ACHC) operates close to 600 facilities in 40 states and the United Kingdom, and is Middle Tennessee's fifth-largest publicly traded health care company, with $2.84 billion of . 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. 2.5. 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.