Overall rating. 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. Presently, over 70% of the companys top-line is paid to Acadia by the British and American taxpayers, he reported. ACHC expects the tax rate to be 25-26%. 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. 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. According to a report from the Centers for Medicare and Medicaid Services. Two lawsuits have been filed against the facility this year. An official website of the United States government. The Medicaid program is primarily administered by the states, but jointly financed by federal and state funds funds ultimately originating from taxpayers. 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. Medicaid fraud is not a victimless crime. More nurses are leaving the profession than joining, leaving Acadia without sufficient staff to care for its UK patients. This settlement is just one example of the great results from our collaboration and hopefully it will have a positive effect on the people of West Virginia, Schoeman added. Both he and his partner were convicted of financial crimes as well. 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. With $3.7 billion in debt, Acadia is poorly positioned in a rising interest rate climate. It closed all of the loopholes insurers used to circumvent the prior Mental Health Parity Act of 1997 (MHPA). 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 major investor-owned mental health and addiction treatment company will pay the federal government $17 million to settle allegations it defrauded Medicaid in West Virginia. U.K. and U.S. government health contracts make up the bulk of the money paid to Acadia Healthcare. It was called the National Mental Health Parity Act (MHPA). Federal inspectors back them up, saying in a report (source) that the facility is: too short-staffed to properly supervise patients. 32, 4 Feb., 2019; https://www.jointcommission.org/assets/1/6/Accr-Tips-Email-Feb-2014.pdf. Medicare/Medicaid payments are critical for these predominantly high-debt firms to meet rising interest expenses. The organization will pay $17 million to the United States and $2.2 milion to the state of West Virginia. They could eliminate some of those cases, but they could also find evidence of more criminal activity, Pihera said. I am not receiving compensation for it. (Page 2, Paragraph 3 of the complaint). An alleged cover-up attempt at the hospital by not reporting the deaths of patients to the facility's governing body. Florida State Attorney Dave Aronberg said: This is an entire industry that's been corrupted by easy money. 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. 21). You have permission to edit this article. The investigation was conducted by HHS-OIG, the Drug Enforcement Administration, West Virginia Medicaid Fraud Control Unite and members of the U.S. Attorneys Healthcare Fraud Abuse, Recovery and Response Team. The 2009 suit alleged: (PSI) suffered from systematic quality of care and patient safety problems. Assistant U.S. "Defendants are liable for: (1) making false statements; or (II) failing to disclose adverse facts known to them about Psychiatric Solutions. Acadia Healthcare's behavioral health treatment facilities specialize in helping children, teenagers, and adults who are suffering from mental health disorders and/or alcohol and drug addiction. 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. Revenue totaled $675.3 million, an increase of 13.8% over the fourth . 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. United States Attorney Mike Stuart announced the formation of ARREST in February 2019. Seasonality. 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. The CIA requires CRC and Acadia to maintain a compliance program, implement a risk assessment program, and hire an Independent Review Organization to review Medicaid claims. 4. Joey Jacobs has extracted about $78 million from the company thus far (not including his compensation and bonus package). It's even harder to find an intrinsic value above $0. The State cited (Belmont-Combined-State-Inspections.pdf) the facility for lack of staff and lack of facilities that would prevent suicides, among other things. This is reminiscent of Q2 2018 earnings, when just days before a shy miss of analyst estimates, Waud dumped stock as well. I have no business relationship with any company whose stock is mentioned in this article. 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. 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. Acadia Healthcare stock price target raised to $50 from $35 at Mizuho. A member of the direct care team at Acadia's flagship facility, Sierra Tucson (located in Oro Valley, AZ), mentioned the following in another Glassdoor employment review entitled "Short staffed to the point that patients are put in danger,". Old men to stumble into Moncton. 7, No. 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. 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. 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. I wrote this article myself, and it expresses my own opinions. Acadia Healthcare 31,705 followers 1w Acadia's Comprehensive Treatment Centers, or CTCs, provide vital care for adults who are suffering from opioid addictions. But, as a profit measure, it worked. The other alleges sexual assault by Michael Jacksa, 40, a former counselor at the facility. Source: Chicagosplash.com. Acadia recently reported that profits slid in the first quarter to $29.5 million from more than $50 million early last year, led mostly by personnel costs. Courtesy: Acadia Healthcare, Cap Table: 2014 ACHC Proxy Statement (pp. Yet cost-cutting has persisted. Share sensitive information only on official, secure websites. Penn has found a passion in his ability to expeditiously investigate companies as well as piecing together how they all contribute or are affected by multi-faceted macro trends. The settlement is about double the payment that Acadia received from Medicaid. You must be a. 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. Acadia is a leading provider of behavioral healthcare services across the United States. 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. This station is part of Cox Media Group Television. 5. He hasnt been able to stand since he left Rolling Hills in January 2018, Marsha said. The penalty totals are adjusted to account for the fact that the . Penn holds a B.A. Ratings by category. Behavioral Healthcare M&A Deal Volume. The American Addiction Centers incident led to increased oversight into the industry and increasing regulation. He tries to keep his golf game in shape and is a loyal fan of his alma mater's Oklahoma Sooner football team.Disclosure: Katie Mikles (SeekingAlpha Contributor) and I are colleagues and partners from a journalistic and entrepreneurial standpoint as well as personal friends. Some notable issues stated in the conference call or in public filings were: ACHC 2018 Recommendations. The company, which runs mental-health and addiction-treatment facilities, reported fourth-quarter net income of $63.1 million, or 67 cents a share, compared with $71.5 million, or . Acadia recently reported that profits slid in the first quarter to $29.5 million from more than $50 million early last year, led mostly by personnel costs. A weak UK environment. It's easy to become a Seeking Alpha contributor and earn money for your best investment ideas. CBC TV in Fredericton wanted to talk to me about concerts and government secrecy yesterday, so I took the bus out to Mumford and . See Debbie Osteen's compensation, career history, education, & memberships. CRC Health operates its subsidiary, Acadia Healthcare, located in Tennessee with treatment centers in West Virginia. Government inspection documents reported allegations of sexual harassment and physical abuse. Yet Acadia has not made any purchases in the last two years, and they have begun to champion joint venture de novo projects like the one with St. Thomas Hospital in Nashville, for example. Courtesy: Acadia Healthcare. Acadia was involved in approximately zero of those transactions. Ending racism in healthcare often begins with medical education - and is the target of a new national project. 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 . 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. Source: The Braff Group. Acadia will likely be forced to impair goodwill due to Brexit putting downward pressure on Priory Group. The company, which. Acadia is experiencing severe interest rate and currency exchange headwinds. Self care is often encouraged and the free breakfast, lunch, and Dinner is a plus! Investigations by health inspectors from the Centers for Medicare and Medicaid Services revealed over 50 pages of violations ranging from unqualified staff to infection control deficiencies, patient rights, and maintenance issues. Courtesy: Acadia Healthcare, Cap Table: 2017 ACHC Proxy Statement (pp. 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. They corroborated the accounts of problems and spoke about a lack of executive interest in improving the situation., Things were dangerous, one former employee said.
