February 13, 2019. Acadia struggles with severe seasonality in the summer months. U.K. and U.S. government health contracts make up the bulk of the money paid to Acadia Healthcare. Source: Complaint in US District Court (Rocinek et al v. PSI, Filed 7/20/2010). Room 209
No charges have been filed. Though that law had wonderful intentions, it was far too narrow; it included no provisions for substance use or dependency issues. 3. Website: www.acadiahealthcare.com Headquarters: Franklin, TN Size: 10000+ Employees Founded: 2005 Type: Company - Public (ACHC) Industry: Health Care Services & Hospitals Revenue: $1 to $5 billion (USD) Competitors: Universal Health Services, Inc., HCA Healthcare, Summit Behavioral Healthcare (OH) Create Comparison Many patients and families are alleging various incidents of misconduct, which include wrongful death, sexual assault, and abuse/neglect of patients, some of whom are under 18. In effect, the three combined laws were a mandate for the $3 trillion insurance industry to pay out unlimited reimbursements for a lifetime disease with no cost-effective solution. Acadia Healthcare Partners With Covenant Health On Acadia Healthcare Reviews - Glassdoor Waud also has a new house, widely known as Maine's "largest mansion.". I have no business relationship with any company whose stock is mentioned in this article. About Us | Acadia Healthcare MARKET PULSE Health-clinic operator Acadia Healthcare Co. Inc. (ACHC) on Monday offered up sales results and forecasts that beat estimates, but a weaker showing for profits. According to the Archer complaint, there was no supervision or security present at the time of the incident due to the understaffed personnel. ACADIA HEALTHCARE INVESTIGATION INITIATED by Former Louisiana Attorney . ET by Tomi Kilgore. Assistant United States Attorneys Alan McGonigal and Jennifer Mankins handled the matter on behalf of the United States. Apr 30 2018. I am proud of the work of my office and that of our partners to ensure the end of this multi-million dollar scheme. The Latest Analyst Ratings for Acadia Healthcare Co Instead of the traditional time-and-capital intensive method of building new (de novo) facilities and adding beds, companies soon found that they could consolidate existing facilities and capitalize on the fragmented nature of the industry. As a leading provider of behavioral healthcare services in the United States and Puerto Rico, Acadia Healthcare operates 246 treatment facilities across 39 states. Insurers instantly discovered ways to circumvent it. Both facilities are still open. Earlier this year in California, Christopher Bathum, the owner of a facility, was convicted of multiple sexual assaults of patients. The various questions for Acadia surrounded the accounting discrepancies, the insider stock sell-off, and the widespread alleged misconduct. Questionable accounting for goodwill and PPE depreciation expenses. In just under two weeks after Acadia's stock reached the highest peak it would ever achieve, a few insiders unloaded $1 billion worth of stock onto the market. 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. Good morning, and welcome to Acadia's Fourth Quarter 2022 Conference Call. Wenn Sie Ihre Auswahl anpassen mchten, klicken Sie auf Datenschutzeinstellungen verwalten. Q4 2022 Acadia Healthcare Company Inc Earnings Call Acadia Healthcare | A Standard of Excellence According to another friendly FBI source (reached via phone in July 2018), Special Agent Tara Smith of Chicago, discussed the link between cost-cutting, potential fraud, and patient harm, and said: it's just not something we do, and it's a challenge to connect the two. Unscrupulous operators resorted to extreme exploitation of minimal regulation via patient brokering, or "junkie hunting," as it's often called, to increase revenues further. Improving the Patient Financial Experience Throughout the Patient Journey. A lawsuit from one of the victims, Shannon Archer, highlights the conditions of neglect. *Some* good colleagues. Neither party has chosen to respond or provide any comment to the substance brought forth herein. Largest Healthcare Fraud Settlement Doesn't Stop Behemoth Coverage of this has been widespread, as seen below: Boy, 5, Found Dead After Spending 8 Hours in Van Outside Children's Health Clinic: Cops, Ascent Children's Health Services to close all facilities. Treat employees better before every ounce of talent is gone and working for competitors. 32, 4 Feb., 2019, [8] Patients at Rolling Hills Hospital in Ada suffer broken bones, head injuries, NewsOK, 7 Jan 2019, https://newsok.com/article/5619558/patients-at-rolling-hills-hospital-suffer-broken-bones-head-injuries, [9] New Allegations Of Elder/Veteran Abuse And Parliaments Autism Debate Could Further Jeopardize Top Line For Acadia Healthcare, Seeking Alpha, 31 Jan. 2019, https://seekingalpha.com/article/4237195-new-allegations-elder-veteran-abuse-parliaments-autism-debate-jeopardize-top-line-acadia, [10] http://www.caringfamilysolutions.org/; https://npidb.org/organizations/behavioral_health/clinical_1041c0700x/1548686322.aspx, [11] http://www.hartfordbusiness.com/article/20190118/NEWHAVENBIZ/190119899/behavioral-health-provider-to-pay-100k-over-false-claim-charges, CCHR INTERNATIONAL 52 YEARS OF PROTECTING HUMAN RIGHTS, 2023 Citizens Commission on Human Rights International. In a June 20, 2018, Glassdoor online review entitled "Used to Be Better, Now It's Just About Acquiring as Much as Possible," one employee in the corporate office wrote the following: People you work with; Corporate office is in a nice area. An analyst asked Joey about that at the end of Q2: Are you comfortable with your assumptions going into the summer months?. A month-long news investigation by WXYZ of Detroit, MI, found: a pattern of assaults on staff dating back years, repeated allegations of physical and sexual abuse involving patients. From January 1, 2012 to July 31, 2018, Acadias treatment centers sent urine and blood samples to an outside laboratory, San Diego Reference Laboratory (the San Diego Lab) for all moderate and high complexity drug testing. GWINNETT COUNTY, Ga. More than 50 local police officers raided a local mental health hospital. But, as a profit measure, it worked. And it will take external-to-the-industry government and law enforcement response to close that gap. Operating cash flows for 2023 are expected to be $450-$500 million , suggesting a rise . When a behavioral healthcare company stops growing its business, but revenue and profit margins continue to grow, that's a problem. Learn about careers at Cox Media Group. Acadia Healthcare to pay $17 million in settlement of Medicare fraud In the shareholder earnings call for Q2, Joey Jacobs said they were expecting one more interest rate hike by the end of the year. It's just a matter of going through a lot of paperwork, Pihera said. SHUT THIS PLACE DOWN BEFORE ANYONE ELSE IS KILLED. NASDAQ: ACHC Shareholder Notice: Update in Lawsuit against Acadia Non-waived laboratory testing, in contrast, consists of moderate and high complexity testing. 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. Defendants' fraudulent scheme and course of business that operated as a fraud or deceit on purchasers of Psychiatric Solutions common stock was a success, as it: (I) deceived the investing public regarding Psychiatric Solutions prospects and business; (II) artificially inflated the price of Psychiatric Solutions' common stock; (III) allowed certain of the defendants to reap over $5.6 million in insider selling proceeds; and (iv) caused plaintiff and other members of the Class to purchase Psychiatric Solutions common stock at inflated prices." Only Channel 2 Action News was there when detectives pulled evidence and questioned employees. Meanwhile, Acadia has fought to continue its rapid growth. 3.9. Of course, for mental health; reimbursements get double-scrutiny thanks to fraud and broadly defined parameters of treatment. Inability to Expand. Additionally, the provisions it did have were woefully ineffective. Most importantly, after all of this, is anyone worried about the patients, their pension, or more importantly, the many children in care, separated from their families? All Rights Reserved, 6616 Sunset Blvd., Los Angeles, CA 90028323-467-4242 / 800-869-2247, Psychiatrists/Physicians admitDisorders are not a Disease, Alternatives to Psychiatric Drugs for Children. He sold the company in 2017 to a global private equity firm.Penn serves as a contributor for Forbes as well. Acadia bought the facility in 2012 and since them three families have sued over injuries to loved ones who were patients there. I found sobriety just over a decade ago, after further treatment at the Hazelden Foundation and Prescott House. Interest rates. [3] https://www.jointcommission.org/facts_about_the_joint_commission/; https://www.jointcommission.org/benefits_of_joint_commission_accreditation/. Fraudulent billing by these Acadia/CRC drug treatment clinics, as contended by the government, limits the States ability to provide desperately needed addiction treatment services, said Maureen R. Dixon, Special Agent in Charge of the Office of Inspector General of the U.S. Department of Health and Human Services Region including West Virginia. A partial reason is that poor people are inclined to seek free shelter in a behavioral healthcare center when it is warm outside. Employees are very underpaid and there is no sense of teamwork between employees. 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. Many have been subjected to buyouts and the large checks that accompany them. Attorneys Alan McGonigal and Jennifer Mankins represented the federal government in the settlement. 50+ officers raid mental health hospital after patient found in freezer, other disturbing claims. As a result of the $17 million settlement, which represents twice the actual loss suffered by Medicaid, both the state and federal programs will be made whole. At Rolling Hills, he suffered two fractured vertebrae, a dislocated shoulder and a broken foot and never recovered. 30% of Acadias revenue comes from the UK, but problems exist, such as: The shortage of nursing staff in the UK is cause for alarm bells. 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. Regulators had inadvertently created an environment ripe for investment. Federal inspectors back them up, saying in a report (source) that the facility is: too short-staffed to properly supervise patients. Entry Level Employee. Acadia has been unable to raise any additional funds, either through financing or through additional stock placement, since Q2 2016. (Page 6, Paragraph 1 of the complaint. Again, this is assuming they'll collect all billed revenue. A weak UK environment. Fix the multitude of issues with the current facilities and get a solid foundation before trying to build higher. I. CRC Health operates its subsidiary, Acadia Healthcare, located in Tennessee with treatment centers in West Virginia. Huntington, WV 25701, Charleston: (304) 345-2200
21). provider visits or the number of days they would cover for mental health patients. I have been working at Acadia Healthcare full-time (More than a year). Source: YCharts. Start Your Review of Acadia Healthcare. Source: Complaint in US District Court (Garden City Employees Ret. If any of the above happens, it will likely cause Mizuho (which currently has a $60 price target) and Wells Fargo to downgrade the stock as they have in the past, causing a further sell-off. 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. Acadia Healthcare: More Abuse, More Need for Government Oversight of In many cases, the documents provided by ADHS show that when Oasis provided an acceptable plan of correction, the department did not conduct an on-site follow up survey, according to The Capitol Forum. Is this happening to you frequently? [1]Acadia Healthcare: ADHS Documents Reveal Violence and Understaffing at Oasis Behavioral Health, Capitol Forum, Vol. 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. Acadia Healthcare Co Inc ACHC Stock Quote According to an anonymous industry expert trained in both business and medicine, "due to the number of suicides at some of their facilities, Acadia's ability to accept certain patients has been restricted by state-level governments.". On February 4, 2019, The Capitol Forum reported it had obtained 373 pages of Arizona Department of Health Services (ADHS) documents regarding investigations into Acadias Oasis Behavioral Health near Phoenix, which accepts children, adolescents, and adults. When state inspectors visited in November of 2017, they declared a state of imminent danger. In June 2017, four employees were charged with manslaughter after a 5-year-old boy died. Source: Chicagosplash.com. The other alleges sexual assault by Michael Jacksa, 40, a former counselor at the facility. The dual understanding of finance and behavioral health led to the notable Acadia Healthcare series of articles in 2018/2019.He began working for a behavioral healthcare provider, Prescott House, Inc. in 2011. 5. He holds an M.B.A. in Finance from the University of Arizona's Eller College of Management in Tucson, AZ.Penn founded the Wilkinson-Dorrell Scholarship Program at The University of Oklahoma Foundation. Our human resources department helps ensure that our teams consist of the very finest candidates, and they assist our employees in making the most of their Acadia experience. The Oklahoman also points to the Oklahoma State Department of Health, which licenses hospitals and conducts inspections on behalf of CMS, rarely suspending or revoking hospital licenses.[8]. We will continue working with the U.S. Attorney and other law enforcement partners to protect government health programs, taxpayers, and importantly people who depend on these funds for vitally needed treatment.. West Virginia-based Acadia Healthcare, along with subsidiary CRC Health, has agreed to dole out $17 million to settle accusations of fraud, representing the largest fraud-related settlement in the history of the state, according to a settlement agreement released this week. MH/SUD Peers vs. S&P 500 (Normalized). The company was founded in January 2005, and is headquartered in Franklin, Tennessee. While many healthcare providers believe that improving the patient financial experience is a critical step for their organization, few have done so successfully. Its purpose was to ensure that all Americans had access to affordable health insurance health insurance that was now required by law to provide access to MH and SUD care on par with traditional healthcare. Prosecutors say that treatment centers frequently illegally waive co-pays and deductibles, telling patients and parents that insurance will cover everything. An attempt was made to notify Tom Graber of the Oklahoma Attorney Generals office in July of 2018, hoping to implore them to investigate, as well as to gather commentary for this account. Astonishingly, in their time since becoming publicly traded, ACHC press release on Q2 earnings from 2018, ACHC presentation Wells Fargo Healthcare Conference 9/2018. 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. It offers behavioral healthcare services to its patients in various settings, including inpatient psychiatric facilities, specialty treatment facilities, residential treatment . Acadia is a leading provider of behavioral healthcare services. That case was filed by counsel on behalf of the Garden City Employees Retirement System and other affected PSI shareholders. 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. Click here to find out more , Insider Trading Volume Since 2015. Inequities can be found in every facet of the industry, but targeting medical students and residents can help stem the tide. Chris Hunter. With $3.7 billion in debt, Acadia is poorly positioned in a rising interest rate climate. However, when they outperformed at Q4 2017, Waud dumped stock after the release of earnings in February. According to a report from the Centers for Medicare and Medicaid Services. Peak Consulting Partners focused on healthcare management and finance. West Virginia-based Acadia Healthcare, along with subsidiary CRC Health, has agreed to dole out $17 million to settle accusations of fraud, representing the largest fraud-related settlement in the history of the state, according to a settlement agreement released this week. Acadia Healthcare Company, Inc. today announced financial results for the fourth quarter and year ended December 31, 2022. In this case, every dime in false billings was doubled for a total settlement that represents twice the harm caused. The concept of treating addiction is broadly defined. Ever, and presently chairs the Illinois State Police Merit Board, Patient was a minor at the time of the intimacies, Patient had experienced incest or other child sex abuse, Patient had experienced rape prior to intimacies with therapist, Patient required hospitalization considered to be at least partially a result of the intimacies, Patient achieved complete recovery from any harmful effects of intimacies, Patient filed formal (e.g., licensing, malpractice) complaint. Government inspection documents reported allegations of sexual harassment and physical abuse. Acadia Healthcare Reports Fourth Quarter 2022 Results 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. era at Psychiatric Solutions, "Used to Be Better, Now It's Just About Acquiring as Much as Possible,", "Short staffed to the point that patients are put in danger,", no bank has ever issued a sell rating. The other lawsuit, which involves an unnamed minor, alleges denial of critical emergency medical care, as well as multiple sexual assaults against children. According to a national survey, abuse in this industry by staff is much more common than many would think; some of the data from 958 respondents in California is below: Source: https://kspope.com/sexiss/sex2.php. Again, the leadership has, for the most part, cashed in. It has been saddled with $3.7 billion in debt, unable to pay it down since Q1 2017. Overall rating. by making a substantial payment to investors harmed by the fraud perpetrated by defendants. 2017, https://www.fiercehealthcare.com/healthcare/uhs-hot-seat-senator-calls-for-federal-probe-over-patient-care-concerns-at-top, [6] https://www.healthexec.com/topics/quality/joint-commissions-failure-has-senator-asking-how-make-its-inspections-public, [7]Acadia Healthcare: ADHS Documents Reveal Violence and Understaffing at Oasis Behavioral Health, Capitol Forum, Vol. An alleged cover-up attempt at the hospital by not reporting the deaths of patients to the facility's governing body. Company has a NEGATIVE tangible net worth. 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. Acadias treatment centers paid the San Diego Lab directly. 27). "Defendants are liable for: (1) making false statements; or (II) failing to disclose adverse facts known to them about Psychiatric Solutions. 15). The Medicaid program is primarily administered by the states, but jointly financed by federal and state funds funds ultimately originating from taxpayers. Last year, the location's top physician since 2012 resigned, citing the decline of the facility under Acadia. Meet Our Staff | Acadia Healthcare As of June 30, 2021, Acadia operated a network of 229 behavioral healthcare facilities with approximately 10,100 beds in 40 states and Puerto Rico. Prior to the act, insurers could require people to pay a greater share of the cost associated with mental health and substance abuse. In the claims for reimbursement submitted to Medicaid, Acadias treatment centers represented that they had performed the moderate and/or high complexity laboratory services. Barred companies from rejecting those with pre-existing conditions. On October 3, 2008, President Bush signed the Mental Health Parity and Addiction Equity Act into law. 1. 2.5. It's even harder to find an intrinsic value above $0. The heavy leverage lining the industry artificially inflated valuations beyond 30X EBITDA, spurring many clinicians with a plethora of "modalities" to set up their own shops. Source: MarketBeat. Acadia is nearing a high-risk of default, and logically, would soon be unable to continue to borrow for growth. Acadia Healthcare shares fall on mixed-bag results, forecasts 7, No. Fraudulent billing by these Acadia/CRC drug treatment clinics, as contended by the government, limits the States ability to provide desperately needed addiction treatment services, Maureen Dixon, Special Agent in Charge of the Office of Inspector General of the U.S. Department of Health and Human Services Region including West Virginia, said in the release.