Attorney General Josh Shapiro announced Medicaid Fraud charges recommended by the 45th Statewide Investigating Grand Jury against two Philadelphia-based drug and alcohol treatment facilities: Southwest Nu-Stop Philadelphia Inc. (Southwest) and its owner, Dr. Lloyd Reid, and New Journeys in Recovery (New Journeys) and its owner Lawrence Gallagher. Attorney General Shapiro has previously charged eleven individuals from Liberation Way for using Pennsylvanians’ insurance information to bill for premium plans, and make a profit while their patients suffered. People with substance use disorder who stayed in these recovery homes were forced to attend certain substandard, outpatient treatment programs. Those outpatient treatment programs paid kickbacks to the recovery homes in return for those homes funneling patients to them, rather than giving the patients choice.
