Feds Announce $17M Settlement with Health Care Firm in W.Va.

Federal prosecutors say they’ve reached a $17 million settlement with a health care company accused of Medicaid fraud in West Virginia.

U.S. Attorney Mike Stuart announced the civil settlement with Acadia on Monday, saying it’s the largest health care fraud settlement in state history.

Stuart says Acadia, though its subsidiary CRC Health, billed Medicaid for $8.5 million in marked-up costs for blood and urine tests that weren’t done at its drug treatment centers and instead performed by a lab in California.

He says the company has also agreed to implement a risk assessment program and hire an independent organization to review its Medicaid claims.

Acadia didn’t immediately respond to a voicemail seeking comment.

Highland Hospital Says Sale to Acadia is Off

Highland Hospital has announced it is not selling its facilities to Franklin, Tennessee-based Acadia Healthcare.

The sale was to include Highland’s Kanawha City hospital. Highland’s board of directors unanimously agreed to sell Kanawha City hospital three months ago.

The Charleston Gazette-Mail reports Highland’s board is now considering other potential partners for the sale.

Highland CEO Cynthia Persily said in a news release Wednesday that the proposed sale “no longer is the right deal at the right time.”

The two behavioral health companies were expecting to have had a definitive agreement in place by the end of September.

The sale would include the Highland Hospital Association, a psychiatric hospital which includes a psychiatric residential treatment facility; Highland Health Center Inc., a 16-bed residential treatment and detoxification program; and Process Strategies, which provides various outpatient behavioral health services.

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