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Acadia Healthcare said it has received requests for information and grand jury subpoenas from federal courts regarding hospitalizations, billing and other matters. The behavioral health facility operator just settled charges from the Department of Justice over its billing practices, and Acadia’s stock price fell to its lowest since May on the news.
Shares of Acadia Healthcare (ACHC) plummeted after the behavioral health facility operator announced it was being investigated by federal authorities over its “admissions, length of stay, and billing practices.”
The company announced that it received a request for information from the U.S. Attorney’s Office for the Southern District of New York and a grand jury subpoena from the U.S. Attorney’s Office for the Western District of Missouri. The Missouri court also issued subpoenas to Acadia’s subsidiaries. Acadia added that it expects similar document requests from the Securities and Exchange Commission (SEC) and possibly other government agencies. The company said it is cooperating with the investigation.
Acadia stock fell about 16% on the news, its lowest point since May.
“Decisions regarding patient care are medical decisions, not business decisions, and these decisions are in no way related to or influenced by insurance coverage or the patient’s ability to pay,” Acadia said in a statement. Ta.
The news broke that Acadia paid $19.85 million to resolve allegations that it knowingly billed medically unnecessary inpatient behavioral health services and services that did not meet federal and state regulations. The announcement came a day after the Justice Department announced it.
Acadia’s stock price has fallen nearly 20% this year.
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