Recovery Centers of America (RCA) is shelling out $2 million to settle allegations of mishandling controlled substances and falling short on providing quality treatment services, U.S. Attorney David Metcalf announced. The company, which has facilities in Pennsylvania and Maryland, is accused under the Controlled Substances Act (CSA) and the False Claims Act (FCA) - they're handing over $1 million for each of the claimed violations after a series of audits and investigations by the Drug Enforcement Administration (DEA) found problems with the way they managed controlled substances and their service documentation.
The DEA dug into RCA's records from 2019 to 2024 and what they found wasn't pretty, unaccounted for controlled substances and a slack approach to recordkeeping requirements were just the tip of the iceberg; and when it comes to billing, from 2017 through 2019 the allegations suggest RCA was charging Medicaid and the Federal Employees Health Benefits Program for treatment services that, simply put, didn't meet the mark. In a statement obtained by the U.S. Attorney’s Office for the Eastern District of Pennsylvania, Metcalf emphasized that "Drug and alcohol treatment facilities must prescribe and store controlled substances in a manner that comports with rules designed to ensure that dangerous drugs do not fall into the wrong hands, They also must provide treatment services that comply with all governing laws and regulations," adding that failure to uphold these responsibilities leads to "significant consequences."
It's not just the DEA waving the red flag here; other heavy-hitters like the Department of Health and Human Services Office of Inspector General (HHS-OIG), and the U.S. Office of Personnel Management Office of Inspector General (OPM-OIG) were all part of the merry band, pursuing RCA's alleged slipups. “This settlement underscores our agency’s steadfast commitment to investigating alleged False Claims Act violations targeting federal health care programs,” Maureen Dixon, Special Agent in Charge of HHS-OIG stated, hammering home the point that unlawful actions not just swindle taxpayers but also pose a real threat to patients looking for help.
This whole debacle unraveled thanks to a whistleblower, a former Outcomes Supervisor at RCA's headquarters, who came forward under the whistleblower provisions of the False Claims Act, which lets individuals in the know sue on the government's behalf when they suspect false claims for government coins are in play - their reward for speaking up in this case is a cool $230,000 cut from the settlement funds. “Patients seeking to recover from addiction should be able to trust that treatment facilities will provide safe, legitimate care in support of their health,” said Derek M. Holt, Special Agent in Charge of the OPM-OIG adding, “We thank our dedicated staff and federal law enforcement partners for holding accountable those facilities that instead seek to exploit vulnerable federal employees and their family members.” The claims settled here are just that, allegations with no formal liability found but a costly reminder to RCA and others in the healthcare biz to keep things tight, and above board.
