NuWay Alliance — Substance Use Disorder Kickbacks
Treatment Provider Pays $18.5 Million for Medicaid Kickback Scheme
Source: U.S. Department of Justice
TL;DR: Treatment Provider Pays $18.5 Million for Medicaid Kickback Scheme This case resulted in a $18.5 Million resolution and demonstrates the impact of whistleblower protections in recovering funds from fraud.
Summary
A substance use disorder treatment provider agreed to pay $18.5 million to resolve allegations that it violated the False Claims Act by paying patients insured by Medicaid to seek treatment from the provider in violation of the Anti-Kickback Statute, and by double billing for treatment services. DOJ alleged the provider offered financial inducements to Medicaid beneficiaries to drive patient volume.
Our Take
Patient inducement cases in SUD treatment often involve "patient brokers" or direct payments disguised as transportation, housing, or other assistance. Insiders typically have evidence of the payment structures, the targeting of Medicaid patients specifically, and any communications acknowledging the purpose was to drive volume rather than assist recovery. If you've seen treatment programs that pay to acquire patients, document the payment flows and any metrics linking incentives to admissions.
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Notice
The summaries above are based on publicly available information released by the U.S. Department of Justice and are provided for informational purposes only. They do not constitute legal advice, investigative findings, or allegations by Disclosure Strategy. Our commentary reflects general, experience-based observations about how False Claims Act matters commonly arise and is not a statement about any party's liability.