In a major enforcement action, Summit BHC New Jersey, LLC, doing business as Seabrook, a drug and alcohol rehabilitation facility in Bridgeton, New Jersey, has agreed to pay $19.75 million to resolve allegations under the federal False Claims Act. The settlement—announced by U.S. Attorney Alina Habba—addresses claims that Seabrook improperly billed for services provided to veterans through the Veterans Health Administration’s (VHA) Community Care Program and to beneficiaries of New Jersey’s Medicaid program.
Seabrook’s Alleged Violations
According to the settlement, the United States alleged that from January 1, 2022, through December 31, 2024, Seabrook submitted claims for:
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Short-term residential treatment, and
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Partial-hospitalization care
even though the facility allegedly lacked the proper state licensing and contractual authority required to provide—and bill for—those services.
The government also alleged that Seabrook:
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Misled state inspectors by concealing improperly performed services,
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Failed to employ a sufficient number of properly credentialed caregivers, including staff qualified to treat patients with co-occurring mental health and substance-use disorders,
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Did not provide specialized veteran care despite representing that it did, instead offering veterans the same care provided to non-veteran patients, and
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Maintained false, inconsistent, or inadequate clinical records documenting the services it claimed to provide.
These allegations were resolved through the civil settlement; the company did not admit liability.
The Role of Whistleblowers in Healthcare Fraud
The case originated with a whistleblower (qui tam) lawsuit filed by former Seabrook employee Jennifer Coulter under the False Claims Act’s whistleblower provisions. After the government intervened and negotiated the settlement, Coulter will receive approximately $3.55 million as her share of the recovery.
This reflects Congress’s intent to incentivize individuals with firsthand knowledge of fraud to come forward, enabling the government to uncover misconduct that may otherwise go undetected and helping to protect taxpayer-funded health programs.
Statements From Federal Officials
U.S. Attorney Alina Habba emphasized that veterans and Medicaid patients are entitled to care from properly licensed and fully qualified providers, and that taxpayer funds must be used to deliver services that meet regulatory standards.
Christopher Algieri, Special Agent in Charge of the VA Office of Inspector General’s Northeast Field Office, stated that providers participating in VA programs must comply with all applicable state and federal requirements, and that the OIG will continue to investigate fraud that undermines the integrity of veteran healthcare programs.
Importance of Reporting Healthcare Fraud
The government continues to encourage reporting of potential fraud, waste, or abuse in healthcare programs. Tips can be submitted to the U.S. Department of Health and Human Services at 800-HHS-TIPS (800-447-8477).
Whistleblowers play a crucial role in helping federal agencies safeguard the health care system and ensure that vulnerable populations receive lawful, high-quality treatment.
Contact The Whistleblower Advocates Today
If you have information about similar misconduct—whether involving veterans’ services, Medicaid, or other government-funded health programs—the legal team at The Whistleblower Advocates is here to help. Our experts offer free and confidential consultations to evaluate potential False Claims Act violations and guide you through the whistleblower reporting process while ensuring your rights are fully protected.
Do not hesitate to reach out to the legal team at The Whistleblower Advocates if you suspect illegal billing practices, misrepresentation of services, or other forms of healthcare fraud. Your actions can make a meaningful difference in protecting patients and safeguarding taxpayer-funded programs.
This article is a news article for informational purposes only. The Whistleblower Advocates did not represent the parties identified in the story above.
