Universal Health Services (UHS) Settles $127 Million Fraud Case

Universal Health Services (UHS), a major operator of for-profit psychiatric facilities in the U.S. and U.K., has agreed to pay $127 million to settle a U.S. Department of Justice (DOJ) investigation into allegations of healthcare fraud. The settlement awaits final approval. However, critics argue that it falls short of what is necessary to address the serious problems plaguing for-profit behavioral health facilities.

Background of the DOJ Investigation Against Universal Health Services

Universal Health Services has been under the DOJ’s scrutiny for allegedly submitting false claims to government healthcare programs through its behavioral health facilities. These accusations include inappropriate billing and unethical practices related to the treatment and management of patients. Despite this, incidents of patient abuse and systemic issues have persisted. This has lead some to question whether UHS is taking adequate measures to ensure patient safety and ethical conduct.

In 2017, Senator Charles Grassley called for a federal probe into Universal Health Services psychiatric hospital sector. He cited the company’s repeated involvement in troubling incidents. Grassley noted a “disturbing trend of behavior” at Universal Health Services facilities, raising concerns about whether UHS was capable of properly managing its network of psychiatric hospitals.

Ongoing  Universal Health Services Allegations of Abuse and Fraud

The DOJ settlement aims to address these issues. However, organizations like the Citizens Commission on Human Rights (CCHR), a mental health watchdog, argue that the financial penalty is insufficient. CCHR contends that a $127 million settlement is unlikely to deter other for-profit behavioral health facilities accused of patient abuse and healthcare fraud.

Since 2015, CCHR has been actively investigating claims of abuse and fraud in for-profit psychiatric facilities. Over 18,000 official complaints have been filed with federal and state authorities regarding such facilities. Many of which are operated by companies like UHS and Acadia Healthcare. These companies collectively receive billions of dollars in Medicaid and Medicare funding.

Sequel Youth and Family Services: A Case Study in Abuse

In addition to Universal Health Services, Sequel Youth and Family Services, also operates psychiatric and behavioral health facilities across the U.S. They have also faced numerous allegations of abuse and misconduct. A 2019 investigation by WBNS 10 News in Ohio found that Sequel’s Pomegranate facility was the subject of over 400 police service calls. There were incidents of violence and sexual abuse involving both staff and residents.

This is not an isolated case. Sequel facilities in Iowa, Utah, and other states have also faced scrutiny. They too are negligible for unsafe conditions, understaffing, and allegations of sexual abuse. In some cases, staff members have been charged with felonies related to the abuse of patients. Despite these alarming reports, Sequel has continued to operate facilities across the country.

Issues Surrounding Acadia Healthcare

The issues surrounding Acadia Healthcare parallel the troubling practices seen at other for-profit behavioral health facilities, like those involving Universal Health Services (UHS) and Sequel Youth and Family Services.

Here are some recent blog posts that highlight the for-profit behavioral healthcare industry and its incidents of abuse, neglect, and unethical practices.

Acadia Abuse in For-Profit Behavioral Facilities

Acadia Healthcare: A Look at Mental Health Treatment

Senator Wyden Calls for DOJ Investigation into Abuse in Youth Residential Facilities

Acadia Healthcare Detaining Patients

Facilities like those run by Acadia receive billions in government funding. However, they face numerous allegations of inadequate care and safety failures. This pattern of prioritizing profit over patient well-being underscores the need for greater accountability in the industry. KBA Attorneys is dedicated to helping victims hold such facilities accountable, advocating for safer care standards and pursuing justice for those affected by substandard treatment and neglect.

The Larger Problem in For-Profit Behavioral Healthcare

The Universal Health Services settlement and the issues surrounding Sequel are part of a broader problem in the for-profit behavioral healthcare industry. Reports of patient abuse, healthcare fraud, and unsafe conditions are rife across many facilities. In some cases, vulnerable patients are subject to physical and sexual abuse by staff members. Others have been involuntarily committed for extended periods, sometimes with the goal of maximizing insurance payments.

CCHR highlights the need for stronger oversight and regulation of for-profit psychiatric facilities. The current penalties, they argue, are not enough to hold these companies accountable or to prevent future abuse. A more effective solution would include higher financial penalties. Additionally it would include the imposition of criminal penalties for those found responsible for systemic abuse or fraud.

Calls for Stronger Oversight and Accountability

West Palm Beach County State Attorney Dave Aronberg has voiced concerns about the for-profit behavioral health industry. He states that “this is an entire industry that’s been corrupted by easy money.” Aronberg’s comments reflect growing frustration with the lack of meaningful oversight in the industry. Particularly when it comes to ensuring patient safety and ethical practices.

The issues with UHS and Sequel are not isolated incidents but are indicative of deeper, systemic problems within the for-profit behavioral health sector. As companies like UHS and Acadia Healthcare continue to profit from government-funded healthcare programs, there is a pressing need for stronger safeguards. These safeguards need to protect vulnerable patients from abuse and exploitation.

A Need for Change After Universal Health Services Settlement

The $127 million Universal Health Services settlement may bring some relief to those affected by the company’s practices. However, it does little to address the broader issues within the for-profit behavioral healthcare industry. CCHR and other watchdog organizations are calling for tougher penalties and more comprehensive oversight to prevent future abuses. Without these changes, the pattern of abuse and fraud in the for-profit psychiatric facility industry is likely to continue.

For patients and families, the settlement serves as a reminder of the need to remain vigilant when seeking care in for-profit facilities. It also underscores the importance of continued advocacy for stronger protections and accountability in the behavioral healthcare system.

KBA Attorneys Can Help

KBA attorneys are dedicated to helping victims of abuse and fraud in for-profit psychiatric facilities navigate the complex legal landscape to seek justice and compensation. With extensive experience in personal injury and healthcare fraud cases, KBA attorneys understand the unique challenges faced by victims and their families. They thoroughly investigate each case, gather evidence, and build strong legal strategies to hold negligent companies and facilities accountable for their actions. By advocating for the rights of those affected, KBA attorneys strive to secure compensation for medical expenses, emotional distress, and any other damages incurred, while also pushing for systemic reforms to prevent future harm. Contact us if you or a loved one have suffered at the hands Acadia Healthcare or any other psychiatric facility.