Substance use treatment provider to pay $18M to settle fraud allegations

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Minneapolis-based Nuway Alliance will pay $18.5 million to settle allegations it submitted fraudulent Medicaid claims. 

The Justice Department alleged Nuway compensated Medicaid patients seeking intensive outpatient substance use disorder treatment, violating anti-kickback laws, according to a June 26 news release. 

Nuway also submitted false claims to Medicaid for services not provided, the Justice Department said. 

As part of the agreement, Nuway will participate in a five-year corporate integrity agreement, requiring it to maintain a compliance program and engage an independent organization to review its Medicaid claims. 

Nuway does not admit any liability or wrongdoing as part of the settlement. David Glaser, an attorney representing Nuway, told the Minnesota Star-Tribune he believes “Nuway violated no law.” 

Nuway operates several residential substance use disorder treatment facilities in Minnesota and offers outpatient services. 

Becker’s has reached out to Nuway for comment and will update this article if more information becomes available. 

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