Employees or Insiders at Substance Abuse Treatment Centers Could be Eligible for Reward from Recent Settlement

Corporate Whistleblower Center urges substance abuse treatment center employees, who have proof their employer is over-billing Medicaid, to contact them about a possible reward

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Corporate Whistleblower Center

Jul 22, 2014, 08:30 ET

WASHINGTON, July 22, 2014 /PRNewswire/ -- The Corporate Whistleblower Center is urging employees, or insiders at a substance abuse treatment center with proof the facility is grossly overbilling Medicaid out of hundreds of thousands, or millions of dollars, to call them at 866-714-6466 to discuss a recent million dollar whistleblower settlement, and what type of proof is needed to advance a whistleblower claim. http://CorporateWhistleblowerCenter.Com

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Drug Justice (PRNewsFoto/Corporate Whistleblower Center)

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The Corporate Whistleblower Center says, "Alcohol and drug treatment is gigantic business in the US. Because so many people don't have insurance coverage for this type of rehabilitation, their state picks up the tab with funding via Medicaid. Based on a decade of helping whistleblowers, we know this industry is not heavily regulated, which in our opinion opens the door for overbilling, and all other types of fraud. In a recent DOJ settlement, a whistleblower will receive $1.5 million dollars for their information concerning this issue. If you work for a rehab/treatment center that is overbilling the state or federal government out of hundreds of thousands, or millions of dollars, we definitely want to talk to you, with the only caveat being you must possess well documented proof.

"For the potential whistleblower in possession of well detailed proof and information, we will help package all pertinent details, and we will then get them in contact with some of the best whistleblower attorneys in the nation. These types of drug, or alcohol treatment centers are in every state, such as California, New York, Florida, Massachusetts, Ohio, Washington, Alabama, Kansas, Illinois, Michigan etc. If you have this type of information, please call us at 866-714-6466." http://CorporateWhistleblowerCenter.Com

The Department of Justice recently announced that CRC Health Corp. (CRC) has agreed to pay $9.24 millon to the federal government and the State of Tennessee to settle allegations that CRC knowingly submitted false claims by providing substandard treatment to adult and adolescent Medicaid patients suffering from alcohol and drug addiction at its facility in Burns, Tenn.

The government alleged that, between 2006 and 2012, New Life Lodge billed the Tennessee Medicaid program (TennCare) for substance abuse therapy services that were not provided or were provided by therapists who were not properly licensed by the state of Tennessee. The government also claimed that New Life Lodge failed to make a licensed psychiatrist available to patients at the facility, as required by the state's regulations as well as failing to maintain patient-staffing ratios required by Tennessee Department of Mental Health regulations, and supposedly billed for Medicaid patients in excess of the state-licensed bed capacity at the facility. In addition, the government alleged that New Life Lodge double-billed Medicaid for prescription substance abuse medications given to residents at the facility.

The Whistleblower will receive $1.5 million as her share of the settlement proceeds. http://CorporateWhistleblowerCenter.Com

Simple rules for a whistleblower from the Corporate Whistleblower Center:

Do not go to the government first if you are a major whistleblower. The Corporate Whistleblower Center says, "Major whistleblowers frequently go to the federal government thinking they will help. It's a huge mistake."
Do not go to the news media with your whistleblower information. Any public revelation of a whistleblower's information could destroy any prospect for a whistleblower reward with the DOJ.
Do not try to force a government contractor, or corporation to come clean to the government about their wrongdoing. The Corporate Whistleblower Center says, "Fraud is so rampant among federal contractors that any suggestion of exposure might result in an instant job termination, or harassment of the whistleblower. Come to us first, tell us what type of information you have, and if we think it's sufficient, we will help find the right law firms to assist in advancing your information."

Any type of insider or employee who possesses significant proof of their employer or a government contractor defrauding the federal government is encouraged to contact to Corporate Whistleblower Center anytime at 866-714-6466 or via their web site at http://CorporateWhistleBlowerCenter.Com

For attribution purposes please refer to the April 2014 Justice Department press release on this matter: http://www.justice.gov/opa/pr/2014/April/14-civ-395.html

The lawsuit is captioned U.S. ex rel. Cederoth v. CRC Health Corporation Inc. , CV-3-11-00897 (M.D. Tenn.).

Media Contact:
M. Thomas Martin
866-714-6466

SOURCE Corporate Whistleblower Center