ROANOKE, Va. (WFXR) — As part of a civil case with the U.S., officials say that Virginia Treatment Center, LLC — doing business as Roanoke Comprehensive Treatment Center (RCTC) — has agreed to pay $348,934 to resolve allegations that it billed Medicaid for addiction treatment services that were not provided by the required licensed individuals, thus violating the False Claims Act.

According to the Department of Justice (DOJ), RCTC is a subsidiary of Acadia healthcare that provides outpatient treatment, including medication-assisted treatment for adults suffering from opioid addiction.

“At a time when addiction disorder is running rampant in many Virginia communities, we must continue to be vigilant in holding accountable those who seek to defraud Medicaid through fraudulent billing schemes like this one,” U.S. Attorney Christopher R. Kavanaugh said in a statement on Tuesday, July 19. “I am grateful for the teamwork of my Office, the Virginia Medicaid Fraud Control Unit, and our other federal, state, and local partners on this important matter.”

“I’m glad that my office, in coordination with our partners in the Western District Attorney’s Office and Department of Health and Human Services, was able to reach a reasonable settlement with the Roanoke Comprehensive Treatment Center for allegedly billing Medicaid for addiction treatment services not provided by licensed officials,” stated Attorney General Jason Miyares. “This is yet another example of the outstanding relationship between Virginia state and federal partners, and we’re continually grateful for their assistance.”

The DOJ says the allegations involved claims that RCTC billed Virginia Medicaid from Jan. 1, 2018 through Dec. 31, 2020 for counseling to patients that was not provided by credentialed addiction treatment professionals.

Officials tell WFXR News that RCTC was required to conduct face-to-face counseling sessions for its patients.

However, during that three-year span, RCTC billed Medicaid for counseling services by people who were not credentialed as though the counseling had been provided by properly credentialed addiction professionals, according to the department.

“Both insurers and patients can be misled when health care entities bill for services as if they were performed by individuals with certain credentials but, in reality, were furnished by less-qualified personnel,” stated Special Agent in Charge Maureen R. Dixon of the Department of Health and Human Services Office of Inspector General (HHS-OIG). “To protect the integrity of federal health care funds, HHS-OIG and our law enforcement partners remain insistent that providers charging programs such as Medicaid do so accurately and transparently.” 

The resolutions obtained in this matter were reportedly the result of a coordinated effort between the U.S. Attorney’s Office for the Western District of Virginia, the U.S. Department of Health and Human Services, and the Virginia Attorney General’s Medicaid Fraud Control Unit.

According to officials, though, “The claims resolved by the settlement are allegations only and there has been no determination of liability.”