Late last month, the federal government announced a False Claims Act settlement with Summit BHC New Jersey, LLC, d/b/a Seabrook (“Seabrook”), a prominent New Jersey Drug & Alcohol Rehabilitation facility. The joint settlement with the New Jersey Attorney General’s Office, in the amount of $19,751,762.69, covered claims submitted by Seabrook under the Medicaid program and Department of Veterans Affairs benefit programs. The Agreement included no admission of wrongdoing by Seabrook. Moreover, the U.S. Attorney’s Office in New Jersey acknowledged cooperation with the investigation and has undertaken remedial measures.
The case originated in January 2023 with a sealed qui tam Complaint filed on behalf of the federal government and the State of New Jersey by Seabrook’s former Director of Risk Management and Corporate Compliance Officer, Jennifer Coulter. Pursuant to the False Claims Act and New Jersey’s False Claims Act, Ms. Coulter will receive a Relator’s share of the settlement of approximately $3.5 million.
The Allegations
Ms. Coulter alleged that Seabrook violated New Jersey regulations in its treatment of inpatient clients, particularly New Jersey Medicaid clients, including in the following ways:
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