NEW YORK ─ The US Attorney's Office for the Eastern District of Kentucky said this week that outpatient alcohol and drug abuse recovery center Recovery Services has agreed to pay $300,000 to resolve civil allegations that it violated the False Claims Act.
The government alleged that Louisville, Kentucky-based Recovery Services billed Kentucky Medicaid for urine drug screens for patients who had not received individualized medical assessments, making those screens ineligible for payment under Kentucky Medicaid policy.
Additionally, the government alleged that Recovery Services billed Kentucky Medicaid for urine drug screens for residential patients despite only being licensed to provide outpatient services.
The settlement resolves claims alleged by the United States; there has been no determination of liability.