### Acadia Healthcare Faces Ongoing Federal Investigations Despite $20M Settlement

Acadia Healthcare Company Inc. has agreed to a $16.6 million settlement to address allegations of violating the False Claims Act, which involved billing federal healthcare programs for unnecessary or non-compliant inpatient behavioral health services. The settlement also includes additional payments totaling $3.2 million to the states of Florida, Georgia, Michigan, and Nevada. These allegations relate to the company’s operations between 2014 and 2017, during which Acadia is accused of admitting ineligible patients and extending their stays without medical necessity.

The federal government claims that Acadia Healthcare not only admitted patients unnecessarily but also failed to provide proper staffing and supervision. This failure reportedly led to severe patient harm, including cases of suicides and assaults. Additionally, Acadia was accused of delivering substandard services, such as insufficient therapy sessions and inadequate discharge planning, which did not meet federal and state healthcare standards. Consequently, Medicare, Medicaid, and TRICARE were billed for services that did not comply with the necessary regulations.

Even after this settlement, federal investigations into Acadia's more recent practices are still underway. Reports from former employees in Georgia and Missouri have prompted further inquiries. In Georgia, employees involved in emergency room patient assessments recounted how FBI agents questioned them about potential pressures to refer patients to Acadia hospitals. Meanwhile, former nurses from Missouri reported being urged to label patients as uncooperative to justify longer inpatient stays.

Robert DeConti, chief counsel for the inspector general, clarified that the settlement does not prevent ongoing investigations into Acadia’s recent activities. Acadia Healthcare has stated that it is fully cooperating with these authorities. Amidst these investigations, media reports have brought to light concerning patient experiences within Acadia’s facilities.

Chris Hunter, CEO of Acadia, responded to these reports by asserting that they do not align with the company's policies or reflect the complexities of behavioral healthcare. To address these issues, Acadia plans to invest an additional $100 million in technology aimed at improving patient and staff safety, as well as enhancing care coordination. These upgrades will include electronic medical records systems, wearable remote patient monitoring devices, improved staff communication tools, and a cloud-based performance improvement platform.

Acadia disclosed in a recent SEC filing that it has received voluntary information requests and a grand jury subpoena from the U.S. Attorney's Office for the Southern District of New York and the U.S. District Court for the Western District of Missouri, respectively. These inquiries focus on Acadia’s admissions processes, length of patient stays, and billing practices. Additionally, a subsidiary of Acadia has received a grand jury subpoena related to similar concerns. The company anticipates further document requests from the U.S. Securities and Exchange Commission and potentially other governmental bodies.