Former executives of the South Bay Mental Health Center, headquartered in Massachusetts, and their private equity backers settled a Medicaid fraud suit filed in 2018 by the Massachusetts Attorney General for a record $25 million, Behavioral Health Business reports. To date, this is the largest publicly disclosed government health care fraud settlement involving PE oversight of health care providers.
The case stemmed from a whistleblower’s complaint that the center employed unlicensed, unqualified and unsupervised staff to provide care in its clinics, then billed the state’s Medicaid program. Read more.