Acadia Abuse in For-Profit Behavioral Health Facilities

Universal Health Services (UHS), a major operator of for-profit psychiatric facilities in the U.S. and the U.K., has agreed to pay $127 million to settle a civil fraud investigation against Acadia Healthcare. This investigation was led by the U.S. Department of Justice (DOJ). The settlement addresses allegations of fraudulent billing practices by UHS behavioral health facilities. This case is part of a broader pattern of abuse and misconduct in the for-profit behavioral healthcare industry. It raises concerns about the adequacy of penalties for these organizations.

Despite the settlement, critics argue that the payment does not go far enough in holding UHS and similar companies accountable. The Citizens Commission on Human Rights (CCHR), a mental health watchdog, believes the settlement fails to send a strong enough message to other for-profit facilities accused of patient abuse and healthcare fraud. Reports of abuse, mistreatment, and fraudulent billing practices have surfaced over the years, and the problem continues to persist.

A History of Abuse in UHS and Other Behavioral Health Facilities

UHS has long faced allegations of patient mistreatment and abuse. Back in 2017, Senator Charles Grassley called for a federal probe into UHS’s psychiatric hospitals. By citing numerous troubling incidents, he was able to raise doubts about the company’s ability to manage its facilities responsibly. Concerns include holding patients for extended periods to maximize insurance payments and failing to provide necessary care. This can lead to incidents of violence and abuse within their facilities.

These issues are not limited to UHS. Companies like Sequel Youth and Family Services, which runs psychiatric and behavioral health facilities across the country, have also faced numerous allegations of abuse. For example, investigations revealed over 400 calls for police services at one of Sequel’s facilities in Ohio. There were numerous reports of sexual abuse and violence involving both staff and teens. This is just one example of the pervasive issues plaguing for-profit behavioral health facilities.

In Iowa, Sequel’s Clarinda Academy came under fire for its use of restraints, leading a youth advocacy group to stop sending children to the facility. Similarly, Utah’s Department of Human Services threatened to revoke the license of another Sequel-owned facility due to understaffing, which contributed to violence and sexual misconduct. Sequel ultimately closed both behavioral health facilities in the wake of these disturbing revelations.

Other incidents include:

• Sexual abuse allegations at multiple Sequel facilities, including the arrest of staff members for sexual misconduct with minors.
• Physical and sexual abuse at facilities such as Lakeside Academy in Kansas and Northern Illinois Academy, where staff members were charged with criminal sexual assault.
• A riot at Red Rock Canyon School in Utah, where over 25 students were injured, leading to the facility’s closure.

UHS and Sexual Abuse Allegations

UHS has also faced serious accusations regarding the treatment of patients in its facilities. One notable case involves the Timberlawn psychiatric hospital in Texas. In this case, one patient raped another patient who was a 13-year-old girl. The facility closed soon after, but concerns about UHS’s handling of such incidents remain. UHS’s National Deaf Academy in Florida was also forced to close following reports of sexual abuse and physical violence involving staff and patients.

Unfortunately, the closure of troubled behavioral health facilities is often only a temporary solution. The for-profit behavioral health industry, fueled by billions in Medicaid and Medicare funding, continues to operate with minimal oversight and accountability. This lack of effective regulation has allowed these companies to perpetuate abusive practices while profiting from vulnerable populations.

The Need for Stronger Oversight and Accountability

The CCHR has long advocated for stricter oversight of for-profit behavioral healthcare companies. Since 2015, over 18,000 official complaints have been filed with federal and state authorities regarding abuse in these facilities. However, the penalties imposed on these companies, such as the recent UHS settlement, are seen as insufficient deterrents to prevent future abuses.

More effective oversight systems need to be in place to protect patients. This includes stricter penalties for facilities found guilty of abuse or fraud. Jail time for executives and significantly larger financial penalties may be necessary to curb the misconduct prevalent in the for-profit behavioral healthcare industry.

How KBA Attorneys Can Help

At KBA Attorney, we are investigating Acadia Healthcare and other for-profit behavioral health facilities for allegations of patient abuse and neglect. If you or a loved one has experienced mistreatment at an Acadia facility, we are here to help. Our attorneys are dedicated to holding these companies accountable and fighting for justice on behalf of those who have been harmed. Contact us today for a free consultation to discuss your case and explore your legal options.