Recovery Centers of America (RCA) has agreed to pay a total of $2 million to settle allegations that it mishandled controlled substances and improperly billed the government for drug and alcohol treatment services. The settlement was announced by United States Attorney David Metcalf.
According to the U.S. Attorney’s Office, $1 million will resolve claims that RCA failed to comply with the Controlled Substances Act (CSA), which aims to prevent the diversion of controlled substances for illegal uses. Audits and investigations conducted by the Drug Enforcement Administration (DEA) at RCA facilities in Pennsylvania and Maryland between 2019 and 2024 found that RCA dispensed controlled substances unlawfully, had missing records for certain drugs, and did not meet additional CSA recordkeeping requirements.
An additional $1 million addresses allegations under the False Claims Act (FCA). The government alleges that from 2017 through 2019, RCA billed the Federal Employees Health Benefits Program and Medicaid for care it did not adequately provide or document at some facilities.
“Drug and alcohol treatment facilities must prescribe and store controlled substances in a manner that comports with rules designed to ensure that dangerous drugs do not fall into the wrong hands. They also must provide treatment services that comply with all governing laws and regulations,” said U.S. Attorney Metcalf. “When they fail in either of those critical duties they will face significant consequences.”
“When rehabilitation and treatment centers do not live up to their obligations, our office will vigorously pursue the violations,” said Thomas Hodnett, Special Agent in Charge of the Drug Enforcement Administration’s Philadelphia Division. “Careless behavior and failure to adhere to the provisions of the CSA allows for substances to be diverted and sold without accountability.”
“This settlement underscores our agency’s steadfast commitment to investigating alleged False Claims Act violations targeting federal health care programs,” said Maureen Dixon, Special Agent in Charge of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG). “Unlawful dispensing of controlled substances and billing for unprovided care endanger patients and defraud taxpayers. HHS-OIG will continue working with our partners to hold providers accountable and protect patient safety.”
“Patients seeking to recover from addiction should be able to trust that treatment facilities will provide safe, legitimate care in support of their health,” said Derek M. Holt, Special Agent in Charge of the U.S. Office of Personnel Management Office of Inspector General (OPM-OIG). “We thank our dedicated staff and federal law enforcement partners for holding accountable those facilities that instead seek to exploit vulnerable federal employees and their family members.”
The case originated from a lawsuit filed under whistleblower provisions allowing private parties who believe false claims were submitted for government funds to sue on behalf of the government; these individuals may receive part of any recovery. In this case, a former Outcomes Supervisor at RCA’s corporate headquarters will receive $230,000 as part of the settlement.
The resolution resulted from cooperation among several agencies: The United States Attorney’s Office for the Eastern District of Pennsylvania, DEA, OPM-OIG, and HHS-OIG.
The matter was handled by Assistant U.S. Attorneys Peter Carr and Charlene Keller Fullmer along with former auditor Dawn Wiggins.
Authorities noted that these are only allegations; there has been no determination regarding liability.
