Acadia Dinged $17 Million Over Medicaid Fraud Allegations

Acadia Healthcare Co. will pay $17 million in what prosecutors call the largest health-care fraud settlement in West Virginia’s history.

CRC Health LLC, a subsidiary of Acadia, is alleged to have billed Medicaid for complex drug tests that another laboratory had actually performed, the U.S. Attorney’s Office said. CRC paid a lab in San Diego to conduct the urine and blood tests and was reimbursed by Medicaid at a much higher rate than it paid, federal prosecutors said.

The settlement is the “first significant result” from an enforcement effort launched in February to combat the opioid epidemic and health-care fraud, ...