Summit BHC New Jersey, operating as Seabrook, a rehabilitation facility in Bridgeton, NJ, has consented to a $19.75 million settlement following allegations of False Claims Act breaches. As stated by U.S. Attorney Alina Habba, the facility improperly billed the Veterans Health Administration's Community Care Program and New Jersey Medicaid for treatments without necessary licenses or contracts, misleading state inspectors.
The U.S. implicated Seabrook in various misconducts from January 2022 to December 2024, including insufficiently credentialed staffing, inadequate care for mental health and addiction, falsely claiming specialized veteran care, and maintaining inconsistent care records.
U.S. Attorney Alina Habba emphasized, “Today’s resolution demonstrates once again this Office’s commitment to ensure that America’s veterans receive the care they deserve and for which the government has paid. Veterans and Medicaid recipients must receive care from fully qualified, licensed providers in facilities that meet state law in all respects. We stand ready to enforce these standards and protect the Americans who need this care.”
Further support was expressed by Christopher Algieri from the VA's OIG: “This civil settlement reinforces the VA OIG’s commitment to safeguarding the integrity of VA’s healthcare programs and preserving taxpayer funds. Providers...must be licensed and follow state and federal law when billing the VA." Naomi Gruchacz of HHS-OIG added, “Our federal health care systems serve vulnerable populations, and by not providing the level of care they deserve that purpose is undermined.”
The case also involved whistleblower action under the False Claims Act, with a former Seabrook employee, Jennifer Coulter, receiving approximately $3.56 million.
Seabrook participated in the investigation, implementing remedial actions and was represented by Richard Westling and Matthew Curley. Jennifer Coulter was represented by Ross Begelman and Marc Orlow.
The resolution stemmed from efforts by New Jersey’s U.S. Attorney’s Office and federal Inspectors General. The matter, managed by Assistant U.S. Attorney Paul W. Kaufman, signals ongoing vigilance against healthcare fraud.
The allegations settled are not an admission of liability. The case is titled United States ex rel. Coulter and the State of New Jersey v. Seabrook House, Inc., Civil Action No. 23-cv-00451.
