In a significant settlement, 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 improper billing practices for services provided to veterans through the Veterans Health Administration's (VHA) Community Care Program and New Jersey's Medicaid program.
Seabrook’s Alleged Violations
The allegations against Seabrook involve a range of violations related to care provided to veterans and other patients. The center is accused of submitting claims for short-term residential treatment and partial hospitalization care without the proper licensing and contracts in place. These actions took place over a two-year period, from January 1, 2022, through December 31, 2024.
Seabrook allegedly misled state inspectors by concealing improperly performed services, failed to employ a sufficient number of properly-credentialed caregivers, and lacked specialized care for veterans dealing with both mental health and addiction issues. Additionally, the center provided the same care to veterans as it did to other patients while misrepresenting this as specialized care. The records of the services rendered were described as false, inconsistent, and inadequate, further exacerbating the violations.
The Role of Whistleblowers in Healthcare Fraud
This settlement also highlights the importance of whistleblowers in uncovering fraudulent activities. The case was initiated by a qui tam lawsuit filed by a former Seabrook employee under the False Claims Act’s whistleblower provisions. As a result, the whistleblower, Jennifer Coulter, will receive approximately $3.5 million as her share of the recovery. This reward mechanism encourages individuals with knowledge of wrongdoing to come forward, helping the government recover taxpayer funds and uphold the integrity of health programs.
The involvement of a whistleblower in this case is crucial, as it enabled the U.S. Attorney’s Office and law enforcement to investigate and bring forward the settlement, ensuring that those responsible were held accountable. The whistleblower's actions align with the U.S. Department of Health and Human Services’ commitment to safeguarding federal health care systems from fraud, waste, and abuse.
The settlement sends a strong message that the U.S. government is committed to ensuring that veterans and other vulnerable populations receive care only from fully qualified and licensed providers. U.S. Attorney Alina Habba emphasized that taxpayers deserve to see their funds used properly in ensuring high standards of care. Special Agent in Charge Christopher Algieri of the VA Office of Inspector General (OIG) added that healthcare providers must comply with federal and state laws to participate in VA programs, and the OIG will continue its work to prevent fraud in such programs.
Importance of Reporting Healthcare Fraud
The government’s efforts to combat healthcare fraud are ongoing. Tips and complaints about potential fraud, waste, and abuse can be reported to the Department of Health and Human Services at 800-HHS-TIPS (800-447-8477). These reporting systems provide a critical means for whistleblowers to alert authorities to fraudulent activities, ensuring that health care systems remain secure and effective.
Contact The Whistleblower Advocates Today
If you suspect similar fraud or mismanagement in healthcare services, whether related to veterans' care or other health programs, the legal team at The Whistleblower Advocates is here to help. Our experts provide free and confidential consultations, guiding you through the process of reporting fraud and ensuring that your rights are protected. If you have information about illegal activities involving government-funded health programs, don't hesitate to reach out and learn how you can make a difference.
This article is a news article for informational purposes only. The Whistleblower Advocates did not represent the parties identified in the story above.
