The Veterans Affairs Department is investigating Acadia Healthcare for possible fraud, The New York Times reported Oct. 18.
In September, Franklin, Tenn.-based Acadia disclosed that it was being investigated by the Department of Justice offices in Missouri and New York related to its admissions, length-of-stay and billing practices.
In regulatory filings published Sept. 27, Acadia said it anticipated receiving document requests from the Securities and Exchange Commission and could receive requests from other government agencies.
"Acadia is fully cooperating with authorities and, at this time, cannot speculate on whether the outcome of these investigations will have any impact on its business or operations," the company said.
The investigations come after the Times reported that the company allegedly detained patients beyond medical necessity. The report alleged Acadia exaggerated patients' symptoms and convinced insurers to cover longer lengths of stay.
The VA is investigating whether Acadia billed payers for inpatient care for patients who were stable enough to be released, according to the New York Times.
In September, Acadia reached a $20 million settlement with the Justice Department to settle allegations Acadia admitted patients not eligible for inpatient treatment and failed to discharge patients when they no longer needed inpatient care. Acadia did not admit wrongdoing as part of the settlement.
The company has called the allegations in the Times' reports inaccurate.
"Reporting on these issues has not reflected the many clinical considerations that inform the appropriate care for a person facing a mental health crisis, including whether and for how long they should receive direct care in a facilty," the company said in a Sept. 27 statement.
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