Twitter:@JELagasse 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. Courtesy: Acadia Healthcare, ACHC: Insider Holdings Decline Since 2015. 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. Pursuant to the settlement agreement, Acadia will pay $17 million to resolve allegations of a billing scheme that defrauded Medicaid of $8.5 million. 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. They care only about profit. I should know more later this week. 1. 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. The Mental Health Watchdog 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. I was made aware that the Oklahoma Department of Human Services apparently ordered the removal of all ODHS children from the facility. 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. 3. The Medicaid program is primarily administered by the states, but jointly financed by federal and state funds funds ultimately originating from taxpayers. 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. 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. 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 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.. 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. Insurers instantly discovered ways to circumvent it. Overview. 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. $8.5 million in Medicaid fraud means $8.5 million in fraud to the taxpayers. Improving the Patient Financial Experience Throughout the Patient Journey. Carpenter didnt respond further. The Commission bases its accreditation on surveys paid for by the hospitals. In some cases, the Department may take additional action such as requiring immediate correction by the facility and may exercise other authority including license suspension, the issuance of civil money penalties, or license revocation.. A lawsuit from one of the victims, Shannon Archer, highlights the conditions of neglect. 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. Beckley: (304) 253-6722 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. Before founding Bar Nothin' Capital Management, and then his research firm Bar Penn was the Co-founder and Managing Partner of Crestview Capital Partners LLC.At Crestview, the firm he co-founded in 2014, Penn led the charge to improve outcomes in mental and behavioral healthcare by scaling quality care models in the arena of community counseling. The company's Atmosphere is good, the employers care about thier employee's wellbeing, and hours are flexible. The best natural target was opioid addiction, with its high demand for substance abuse treatment services. All health care related cases in the Southern District of West Virginia, whether they are the subject of criminal or civil investigation or enforcement, are directed through ARREST. 27. The company rampantly and openly commits insurance fraud. A lock ( Company has a NEGATIVE tangible net worth. 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. Beckley, WV25801, 845 Fifth Avenue Acadia would suffer greatly from any changes in the regulatory environment. This is the embodiment of the operational and financial abuses that have permeated this industry. Federal inspectors back them up, saying in a report (source) that the facility is: too short-staffed to properly supervise patients. Active contributors also get free access to the SA PRO archive. A month-long news investigation by WXYZ of Detroit, MI, found: a pattern of assaults on staff dating back years, repeated allegations of physical and sexual abuse involving patients. [4]Acadia Healthcare: ADHS Documents Reveal Violence and Understaffing at Oasis Behavioral Health, Capitol Forum, Vol. Victims of Acadia Healthcare. Insurers could also limit the Mental Health (MH) and Substance Use Dependence (SUD) services offered in benefit packages. In just under two weeks after Acadia's stock reached the highest peak it would ever achieve, a few insiders unloaded $1 billion worth of stock onto the market. Overall Experience. Debbie Osteen is Former Chief Executive Officer at Acadia Healthcare. 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. Our Facilities 21,000+ EMPLOYEES 9,900+ BEDS 227 LOCATIONS 40 STATES 1 NETWORK Courtesy Acadia Healthcare, Cap Table: 2013 ACHC Proxy Statement (pp. MARKET PULSE Health-clinic operator Acadia Healthcare Co. Inc. (ACHC) on Monday offered up sales results and forecasts that beat estimates, but a weaker showing for profits. ignoring their complaints, and had poor quality control procedures in place. 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. Acadia Healthcare operates 10,200 beds spanning 230 facilities in 41 American states and territories. We collaborate and research together, as many readers know, however, are expressing our own unique investment viewpoints. 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. Los Angeles, CA 90028 800-869-2247 323-467-4242 323-467-3720 Fax. 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]. Huntington Comprehensive Treatment Center in West Virginia. 5. 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. 1. labor relations violation. The ADHS website lists facility enforcement actions dating back three years. needed, and desperate to induce actual change, Senator Ted Kennedy and his son, Patrick, were key in adding the. All they had to do was limit the number of provider visits or the number of days they would cover for mental health patients. Assistant United States Attorneys Alan McGonigal and Jennifer Mankins handled the matter on behalf of the United States. era at Psychiatric Solutions. 17). They also increased cost sharing through higher deductibles, co-pays, and out-of-pocket payments. The penalty totals are adjusted to account for the fact that the . Oasis had been the subject of five enforcement actions and fined a mere $7,000. Two lawsuits have been filed against the facility this year. Their employee turnover is very high. sued Jacobs and the PSI Management in Federal District Court, Complaint in US District Court (Rocinek et al v. PSI, Filed 7/20/2010), (Garden City Employees Ret. Reeve Waud is $638 million richer solely from the sales of individually owned stock, but still holds over 700,000 shares in various entities, according to Nasdaq. Click here to find out more , Insider Trading Volume Since 2015. With more than 20,000 employees serving approximately 70,000 patients daily, Acadia is the largest stand-alone behavioral health company in the U.S. Acadia provides behavioral healthcare services to its patients in a variety of settings, including inpatient psychiatric hospitals, specialty treatment facilities, residential treatment centers and SLOW DOWN. On average, how many hours do you work a day at . While these occurrences are industry-wide, the combination of Acadias mere size and potential for profit appear to position it in similitude with a brewing disaster. 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 a leading provider of behavioral healthcare services across the United States. 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). Interest expense for the last half of the year is expected to be around $95 million. Treat employees better before every ounce of talent is gone and working for competitors. 3.9. Nearly 600,000 West Virginians rely on Medicaid for the payment of critical services. In August 2018, the Department of Justice announced the creation of a new regional Medicare fraud strike force covering Newark, New Jersey and Philadelphia, Pennsylvania, adding to similar such strike forces in Miami, Los Angeles, Detroit, Chicago and other major metropolitan areas. A press release on that date, issued by the plaintiff('s) counsel, Robbins, Geller, Rudman, & Dowd LLP, stated that Jacobs and the PSI leadership ended the dispute. Penn Little is an entrepreneur, researcher, investor, writer, and investigative journalist.Hailing from the small town of Springer, Oklahoma, Penn first began "investing" in the 5th grade, when his group won the 3rd place in a Dallas Morning News-sponsored stock picking contest. Or they will rack up huge bills for patients, charging $4,000 for every unnecessary urine test. 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. Source: Complaint in US District Court (Garden City Employees Ret. Though that law had wonderful intentions, it was far too narrow; it included no provisions for substance use or dependency issues. 7, No. A hospital, now owned by UHS, hasnt appeared to change much. Lastly, contact was made with Acadia Healthcare and Waud Capital Partners via telephone and email. He was ordered to pay around $300k in restitution, and while it took him eight years to do so, he settled the bill in 2016.While in graduate school, in his resurgence from the time of tough lessons: Penn became a partner in a start-up management consulting firm, beginning in 2013. 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. A second attempt to contact AG Sessions was made on April 26, 2018. Please disable your ad-blocker and refresh. U.K. and U.S. government health contracts make up the bulk of the money paid to Acadia Healthcare. 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. There appears to be an acceptable level of patient abuse and sexual abuse because thats the norm in the mental health industry. 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. 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. Source: The Braff Group. 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. Ada, OK, Rolling Hills Hospital. Acadia offers an unhealthy work environment, terrible management that is rarely on site, and unreasonable expectations. This settlement is the first significant result since its inception. A .gov website belongs to an official government organization in the United States. 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. 7, No. Our community is ready to answer. Another law, passed in 1997, had tried to achieve something similar. The 2009 suit alleged: (PSI) suffered from systematic quality of care and patient safety problems. According to the Acadia website, this facility is: located on 43 tranquil acres in the suburbs of Chicago. All Rights Reserved, 6616 Sunset Blvd., Los Angeles, CA 90028323-467-4242 / 800-869-2247, Psychiatrists/Physicians admitDisorders are not a Disease, Alternatives to Psychiatric Drugs for Children. In this case, every dime in false billings was doubled for a total settlement that represents twice the harm caused. 5. Today, the company appears to be owned by (predominantly) passive dollars. Henderson, NV, Seven Hills Hospital. Courtesy: Acadia Healthcare, Cap Table: 2017 ACHC Proxy Statement (pp. 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. Waived laboratory tests are simple tests with a low risk for an incorrect result. Lock The settlement represents the largest healthcare fraud settlement in the history of West Virginia and is twice the actual loss from the scheme. It offers behavioral healthcare services to its patients in various settings, including inpatient psychiatric facilities, specialty treatment facilities, residential treatment . Behavioral Healthcare M&A Deal Volume. There were broken vents that kids could cut themselves with. According to a report from the Centers for Medicare and Medicaid Services. Acadia Healthcare Company, Inc. today announced financial results for the fourth quarter and year ended December 31, 2022. CBC TV in Fredericton wanted to talk to me about concerts and government secrecy yesterday, so I took the bus out to Mumford and . Contact. The strike force works with law enforcement agencies including State Medicaid Fraud Control Units. Acadia Healthcare 31,705 followers 1w Acadia's Comprehensive Treatment Centers, or CTCs, provide vital care for adults who are suffering from opioid addictions. 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. 2 min read PHILADELPHIA, March 23, 2021 (GLOBE NEWSWIRE) -- Kaskela Law LLC announces that it is investigating Acadia Healthcare Company, Inc. (NASDAQ: ACHC). He recently acquired an ownership stake in the Nashville Predators, according to The Tennessean. 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. The various questions for Acadia surrounded the accounting discrepancies, the insider stock sell-off, and the widespread alleged misconduct. Three months after the MHPAEA went into effect, Obamacare was signed into law. And it will take external-to-the-industry government and law enforcement response to close that gap. It's easy to become a Seeking Alpha contributor and earn money for your best investment ideas. provider visits or the number of days they would cover for mental health patients. 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]. Courtesy: Acadia Healthcare, Cap Table: 2014 ACHC Proxy Statement (pp. [5] UHS in the hot seat: Senator calls for federal probe over patient care concerns at top-performing hospital FierceHealthcare, 25 Apr. Acadia bought the facility in 2012 and since them three families have sued over injuries to loved ones who were patients there. It also employs about 20,000 people that serve about 70,000 people a day as of the end of October 2021, according to the release. Charleston, WV 25301, 110 North Heber Street Fort Myers, FL, Park Royal Hospital. It's even harder to find an intrinsic value above $0. Acadia Healthcare CEO Joey Jacobs. 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. Acadia, acting through its subsidiary, CRC Health, L.L.C. MH/SUD Peers vs. S&P 500 (Normalized). 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. This station is part of Cox Media Group Television. CCHR International 6616 Sunset Blvd. Allegations of potential fraudulent billing and abuse are not limited to Acadia and UHS. In 2005, Waud Capital Partners, founded by Chicago's Reeve B. Waud created a new behavioral healthcare company called Acadia Healthcare. The settlement was reached with the United States through the Department of Justice, the Department of Health and Human Services and the state of West Virginia via its Department of Health and Human Resources and Medicaid Fraud Control Unit. Source: Y Charts, Cap Table: 2016 ACHC Proxy Statement (pp. Naturally, investment firms jumped on the opportunity. Additional disclosure: All Relevant Litigation Discovered to Date Can Be Found at:https://www.dropbox.com/sh/edipup27v9mbio5/AAAgDjlsvuwW-Kp04PG6ew5va?dl=0. Courtesy: Acadia Healthcare. Sexual assault against patients is alleged to have occurred as well. 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. More nurses are leaving the profession than joining, leaving Acadia without sufficient staff to care for its UK patients. 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. 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. The American Hospital Association and American Medical Association are among the 11 organizations signing the letter. ; https://www.jointcommission.org/about/jointcommissionfaqs.aspx#2323. That case was filed by counsel on behalf of the Garden City Employees Retirement System and other affected PSI shareholders. 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. era at Psychiatric Solutions, "Used to Be Better, Now It's Just About Acquiring as Much as Possible,", "Short staffed to the point that patients are put in danger,", no bank has ever issued a sell rating. Compared to the closing price on Monday 02/27/2023 on NAS of $80.49, this is a drop of 3.42%. 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. What we found most alarming were the instances of restraint and seclusion violations where adolescents were left unmonitored in seclusion rooms. 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 . psychcrime@psychcrime.org 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. Acadia gets most of its business from referrals. Interest expenses are anticipated to be $80-$85 million for 2023. Acadia is a leading provider of behavioral healthcare services across the United States. 20,000 Employees We employ professionals who are dedicated to developing innovative ways to deliver individualized behavioral health treatment. 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. A partial reason is that poor people are inclined to seek free shelter in a behavioral healthcare center when it is warm outside. United States Attorney Mike Stuart announced the formation of ARREST in February 2019. The other alleges sexual assault by Michael Jacksa, 40, a former counselor at the facility. 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. These treatment centers are located in Charleston, Huntington, Parkersburg, Beckley, Williamson, Clarksburg, and Wheeling. 7, No. Acadia has been unable to raise any additional funds, either through financing or through additional stock placement, since Q2 2016. In the last two years, the number of nurse vacancies has risen by 17%. Acadia has no apparent ability to raise profit margins any further. 1. The company was founded in January 2005, and is headquartered in Franklin, Tennessee. from The University of Oklahoma in Norman, Oklahoma, where he studied Economics. Myron Ballou, 70, was hospitalized at Rolling Hills in December 2017 after staff at the Oklahoma Veterans Center observed changes in his behavior, his wife, Marsha, said. 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. Here is the full statement from Lakeview Behavioral and Acadia Healthcare on todays search warrant by @GwinnettPd @wsbtv pic.twitter.com/0QdlzDYH6i. Secure .gov websites use HTTPS Additionally, the provisions it did have were woefully ineffective. 16). Its stock plummeted on August 4, 2015, and the sector's public players peaked, as seen above. Unscrupulous operators resorted to extreme exploitation of minimal regulation via patient brokering, or "junkie hunting," as it's often called, to increase revenues further. There has been speculation of a private equity buyout of the company; however, this has not been verified. If you have an ad-blocker enabled you may be blocked from proceeding. Cash from operations growth has dried up. 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. The message is clear if you are cheating the system and we find you, youll not only pay for the damage done but far more. The company's shares (Ticker: ACHC). There was a child that was escorted to the hospital because he was punched in the face by a staff member. Acadia will likely be forced to impair goodwill due to Brexit putting downward pressure on Priory Group. Acadia is experiencing severe interest rate and currency exchange headwinds. Overall rating. 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 layman terms,. This most recent quarter (Q3, 2018), they missed earnings by $.10. The problem is that Medicaid paid the facilities a much higher amount for the tests than the lab had charged for the analysis. 3. Questionable accounting for goodwill and PPE depreciation expenses. Acadia bought the facility in 2012 and since them three families have sued over injuries to loved ones who were patients there. 19,200. Presently, over 70% of the companys top-line is paid to Acadia by the British and American taxpayers, he reported. Room 209 Medicaid fraud is not a victimless crime. 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. I have no business relationship with any company whose stock is mentioned in this article. Apr 30 2018. I/we have no positions in any stocks mentioned, but may initiate a short position in ACHC, UHS, AAC over the next 72 hours. Of course, for mental health; reimbursements get double-scrutiny thanks to fraud and broadly defined parameters of treatment. Revenue totaled $675.3 million, an increase of 13.8% over the fourth . It operates a network of over 225 facilities across the United States and Puerto Rico. Acadia is a leading provider of behavioral healthcare services across the United States. By using this website, you accept the terms of our Visitor Agreement and Privacy Policy, and understand your options regarding Ad Choices. As a result, reputable clinicians are willing to refer to Acadia less and less. on Monday offered up sales results and forecasts that beat estimates, but a weaker showing for profits.