Crossroads to pay $863K to resolve false claims allegations

A group of four Crossroads Treatment Centers has agreed to pay $863,934 to settle allegations that they submitted fraudulent claims to Medicaid.

From 2016 to mid-2023, Crossroads Treatment Center of Petersburg (Va.), Newark-based ARS Treatment Centers of New Jersey, Crossroads Treatment Center of Greensboro (N.C.) and Starting Point of Virginia in Abingdon — all part of Greenville, S.C.-based substance use treatment network Crossroads Treatment Centers — allegedly submitted claims to Medicaid for high-complexity patient meetings despite knowing that only regular substance use treatment check-ins were performed which did not meet that criteria, according to a July 25 news release from the Justice Department.

The U.S. will receive $356,891 of the civil settlement and Virginia will receive $507,043, according to the release. The investigation was initiated after Diana France, a former director of network management and contracting for Crossroads, filed a lawsuit under the whistleblower provisions of the False Claims Act. Under the provisions, she will receive $60,671 as her share of the federal recovery as well as an undisclosed share of Virginia's settlement.

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