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Healthcare Fraud – Case Against Behavioral Health System

Outcome: $19.85 Million | 19% Whistleblower Reward

The United States Department of Justice resolved a False Claims Act whistleblower lawsuit against Acadia Healthcare Company, Inc., a major operator of inpatient behavioral health facilities. The settlement resulted in Acadia paying nearly $20 million to the federal government and the states of Florida, Georgia, Michigan, and Nevada. This legal action stemmed from allegations that Acadia submitted false claims to Medicare, TRICARE, and Medicaid by admitting ineligible patients, extending services unnecessarily, or failing to provide adequate treatment while still billing these programs. Additionally, the facilities allegedly did not offer sufficient care for those requiring intensive or personalized care plans and failed to implement proper staffing protocols to prevent harm. TZ attorneys Renée Brooker, Eva Gunasekera, and Jaclyn Tayabji represented one of three whistleblowers.

The case highlighted the critical role whistleblowers play in safeguarding taxpayer dollars and ensuring vulnerable patients receive the care they deserve. Three courageous former employees of Acadia came forward with these allegations in 2017, enduring retaliation but ultimately aiding in the exposure of fraudulent practices. Their efforts underscore the importance of accountability and transparency in federally funded healthcare programs. The whistleblowers were rewarded with 19% of the recovery amount, recognizing their pivotal role in the settlement and encouraging others to speak out against fraud and abuse in the healthcare sector.

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