Civil Complaint Alleges Millions of Dollars in Medicaid Fraud

The United States and the State of Rhode Island announced that they have intervened in a civil lawsuit against Journey to Hope, Health, and Healing, Inc. and its then-CEO, Kenneth L. Richardson, Jr., filing a complaint alleging that these defendants billed the Rhode Island Medicaid program for millions of dollars for substance use disorder treatment services that the Defendants knowingly and routinely failed to provide to their patients who needed these services, and subsequently falsified records in order to make it appear that required services were being provided, according to United States Attorney Zachary A. Cunha and Rhode Island Attorney General Peter F. Neronha.

The Complaint in Intervention under the federal and Rhode Island state False Claims Acts and other theories of civil liability lays out the governments’ allegations that Journey, despite holding itself out as a certified and accredited opioid treatment provider, routinely failed to provide treatment plans and adequate counseling for patients for whom they were providing methadone, while at the same time collecting over $15 million from the federal-and-state-administered Medicaid program during the period between January 2015 and July 2021. The complaint further alleges that in preparation for upcoming reviews by accreditation officials and other auditors, Journey personnel were instructed by management to falsify records in order to make it appear that the missing services had been provided. The United States and the State of Rhode Island allege that over half of amount claimed by Journey during this time period was false, and the government is seeking to recover up to three times the amount paid as a result of the alleged false claims, plus penalties.

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