Psychiatric hospital to pay $5.5M+ to settle kickback allegations

Brookline, Mass.-based First Psychiatric Planners, operating as Bournewood Health Systems and Bournewood Hospital, agreed to pay at least $5.5 million to resolve allegations it violated the state and federal False Claims Act through patient kickbacks. 

Bournewood could pay up to $6.5 million to resolve the allegations, according to an Oct. 1 Justice Department news release.  

The behavioral health organization admitted that from September 2013 through May 2022, it  provided free sober housing to substance use recovery patients enrolled in Medicare and Medicaid with the motive of inducing these patients to participate in its hospitalization program, according to the release. 

Bournewood also admitted that it had contracted with homes to house patients enrolled in its hospitalization program who were receiving federal or Massachusetts healthcare program benefits. Bournewood only paid housing fees for patients who enrolled in and attended the program. If a patient stopped attending, Bournewood allegedly ceased paying sober home costs, regardless of the patient’s financial situation, housing status or availability of alternative housing. 

The Justice Department also said that Bournewood frequently sent recovery patients to sober homes whose owners and operators engaged in unlawful behavior and exploited vulnerable recovery patients.

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