Are drug rehab centers losing millions due to fraud?
Jan. 6, 2020 Rehab Center Owner Pleads to Healthcare Fraud The founder of a Los Angeles drug and alcohol treatment facility pleaded no contest today to running a $175 million fraudulent healthcare billing scheme, the Los Angeles County District Attorney’s Office announced.
Will drug rehab fraud affect your insurance premiums?
Jul 14, 2020 · The Insurance Fraud Case: In January, Bathum pleaded no contest to seven counts of grand theft, five counts of insurance fraud and one count each of identity theft and money laundering. Bathum and co-defendant Kirsten Wallace (dob 4/3/73) obtained multiple health care insurance policies for their clients, using their personal identifying ...
Why was Chatman not allowed to own a rehab facility?
Jan 07, 2020 · Jan 07, 2020 More on Compliance & Legal Owner of Los Angeles rehab center pleads guilty to $175 million healthcare fraud The owner pleaded guilty to seven counts of grand theft, five counts of insurance fraud and one count each of identity theft and money laundering. Jeff Lagasse, Associate Editor
Why was Health Net sued by drug and alcohol treatment centers?
Nov 14, 2016 · Rehab Facility Owners Arrested in $176 Million Fraud Scheme. LOS ANGELES - California Department of Insurance detectives, assisted by multiple law enforcement agencies, arrested Chris Bathum and Kirsten Wallace, the CEO and CFO of sober living facilities, on multiple felony counts of grand theft, and identity theft, for allegedly conspiring to ...
How do disreputable addiction treatment centers have skirted the laws and taken advantage of insurers?
Another way disreputable addiction treatment centers have skirted the laws and taken advantage of insurers is by patient brokering. Patient brokering involves hiring sales agents to convince prospective clients into traveling to a certain rehab facility. The sales agents get a kickback for each client referred.
Why is ECHO Recovery so hard?
Because the opioid epidemic and rehab fraud are making it more difficult for some people to receive addiction treatment, ECHO Recovery is working harder than ever to help as many Americans as possible find affordable addiction treatment, housing, and help.
What are the problems with addiction?
The availability of addiction treatment for patients is limited. The problems: 1 Insurance fraud 2 The out-of-network designations with higher patient responsibility 3 Increasing number of rehab centers falling into the out-of-network providers’ category 4 The impact of the opioid crisis demanding more services than are available in some areas
How many people die from opioids every day?
Opioid Epidemic Killing People and Prices. At a time when, according to the Centers of Disease Control and Prevention (CDC), 115 people die every day from overdosing on opioids, we need addiction treatment centers more than ever. The CDC also reports opioid-related deaths are still continuing to rise.
Is patient brokering illegal in Florida?
Patient brokering is illegal in some states, like Florida. Florida rehab facilities are forbidden to fly out-of-state clients in for treatment. They are not allowed to waive fees, copays or give any other monetary compensation for coming to their rehab.
Does Health Net pay for drug treatment?
Insurance companies like Health Net, which serves Arizona and California, are suddenly not paying claims for drug addiction treatment. Health Net was sued by nine drug and alcohol treatment centers last year for delayed or incomplete payments for policyholders’ addiction treatment.
Where is Community Recovery located?
Community Recovery was one of hundreds of new rehabs that opened in Southern California. So many popped up that the hundred-mile stretch of coastline from Orange County to Malibu was nicknamed “Rehab Riviera.”. Similar booms took place in Florida and in the more ski-friendly parts of Utah.
Who is Christopher Bathum?
He’s an exceptionally bad person, but as a businessman he was fairly typical of rehab operators in America’s $42 billion-a-year treatment industry. His name is Christopher Bathum. Until his arrest in 2016 he ran Los Angeles-based Community Recovery, among the fastest growing rehab chains in the nation. Starting with a single treatment center in ...
When did the Affordable Care Act go into effect?
It was free enough. The Affordable Care Act made sweeping changes to the recovery industry, which went into effect in 2012. After decades of denying coverage, insurance companies were required to pay for treatment, and at rates comparable to coverage for major illnesses.
What is a sober home in Florida?
Under Florida law, a sober home—a place for recovering addicts to live—opera tes under a typical landlord-tenant arrangement. The resident pays rent, and the landlord provides a place to live—but not actual treatment.
What is sober home?
In general, sober homes consist of communities of people who agree to live together in a drug-free environment. A drug treatment facility, however, is much more proactive and offers medical treatment, so it must be licensed. And that’s where Chatman’s crimes began.