BURNS, Tenn. (AP) -- Owners of the New Life Lodge drug and alcohol treatment facility in Burns have agreed to pay $9.25 million to settle allegations of TennCare fraud.
According to the state attorney general's office, the state claims that CRC Health Group provided substandard services, repeatedly exceeded its patient capacity and caused third-party pharmacies to bill the TennCare program for prescription drugs that New Life Lodge was obligated to provide.
The state claims the fraud took place between 2006 and 2012.
The settlement is the result of a joint investigation between the state of Tennessee and the United States. The recovery will be divided between the state and federal governments, with Tennessee receiving approximately $3.4 million.
CRC has not admitted to any wrongdoing.
To comment, the following rules must be followed:
Comments may be monitored for inappropriate content, but the station is under no legal obligation to do so.
If you believe a comment violates the above rules, please use the Flagging Tool to alert a Moderator.
Flagging does not guarantee removal.
Multiple violations may result in account suspension.
Decisions to suspend or unsuspend accounts are made by Station Moderators.
Links require admin approval before posting.
Questions may be sent to firstname.lastname@example.org. Please provide detailed information.