Acadia Healthcare continues to face investigations of its length-of-stay and billing practices.
On Sept. 27, Acadia disclosed in filings with the U.S. Securities and Exchange Commission that it and a subsidiary it owned received federal grand jury subpoenas and voluntary requests for information from Department of Justice offices in Missouri and New York, respectively, related to its admissions, length-of-stay and billing practices.
The federal investigations come after a report in The New York Times that alleged Acadia detained patients beyond medical necessity. The report alleged at some Acadia facilities, patients were blocked from leaving through laws meant for those who pose an imminent threat to themselves or others, but legal standards were often not met.
The report also alleged Acadia exaggerated patients' symptoms and convinced payers to cover longer lengths of stay.
In regulatory documents, Acadia said it expects to receive similar requests from the SEC, and may receive additional requests for documents from other government agencies.
Acadia's length-of-stay policies have come under fire in the past. The Franklin, Tenn.-based company operates more than 250 behavioral health and substance use treatment centers in 38 states.
On Sept. 26, the Justice Department said it reached a $20 million settlement with the company to resolve allegations Acadia admitted patients not eligible for inpatient treatment and failed to discharge patients when they no longer needed inpatient care. The case was first brought in 2017 by former Acadia employees.
In a Sept. 27 statement, Acadia CEO Chris Hunter said ensuring quality care is the "No. 1 priority for my colleagues across the company.
"We're committed to taking action on incidents that fall short of our rigorous standards and are making investments necessary to establish Acadia as the leading behavioral healthcare provider for high-acuity and complex needs patients," Mr. Hunter added.
The company has called reports in theTimes inaccurate.
"During the last several weeks, media has reported on patients who have shared troubling experiences at Acadia's facilities. As reported, these experiences are completely inconsistent with Acadia's policies and protocols," the company said. "Furthermore, 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 facility."
In the past two years, Acadia has invested in new technology and clinical protocols to improve safety and care, Mr. Hunter said. The company has also appointed new officers in the past two years, including appointing a new chief medical officer in April.
"It will take time for the benefits of our initiatives to be fully realized, but we’re already seeing positive results," Mr. Hunter said.