The U.S. Attorney's Office for the Eastern District of Kentucky announced in a statement on July 27 that Addiction Recovery Care LLC, and its affiliates Pioneer Health Group LLC and Science Hill Family Care LLC, have agreed to a civil judgment of $16.2 million in favor of the United States to resolve allegations that they defrauded the Kentucky Medicaid program. ARC, headquartered in Louisa operates residential and outpatient drug rehabilitation facilities throughout the state. Along with its affiliates, ARC offers behavioral healthcare and medical healthcare services to patients at their rehabilitation facilities.
According to the statement, the judgment, announced today by the U.S. Attorney’s Office and the Office of Kentucky Attorney General Russell Coleman, is part of a civil settlement resolving allegations that ARC and its affiliates violated the False Claims Act, a federal statute that prohibits the submission of false claims for payment to government programs, including the Medicaid program.
In April 2023, the statement said, current and former employees of ARC filed a qui tam complaint alleging that ARC defrauded the Kentucky Medicaid program by submitting fraudulent claims for payment for behavioral health services provided in their drug rehabilitation programs.
Under the qui tam provisions of the False Claims Act, a citizen can file a civil action on behalf of the United States to bring allegations of fraud to the Government’s attention.
The United States...
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