Mental Health Service Provider Pays Millions to Settle Medicaid False Claims Cases

  • Arkansas AG Leslie Rutledge reached two settlements with mental health care provider Preferred Family Healthcare (“PFH”) to resolve allegations that former PFH employees submitted false claims to the Arkansas Medicaid Program in violation of the federal and state False Claims Acts.
  • According to the AG’s office, PFH employees allegedly billed Medicaid for counseling services that were not rendered or overbilled, and PFH inappropriately billed an entire class of recipients whose bills should have been submitted to Medicare and not to Medicaid. Five former PFH employees have reportedly been charged in state court over their involvement in the scheme.
  • According to the AG’s office, PFH will pay over $4.55 million to resolve the federal false claims case and nearly $1.95 million to resolve the state false claims case.