Recovery Centers of America (RCA) has agreed to pay a total of $2 million to settle allegations that it violated federal laws regarding the handling of controlled substances and improperly billed government health programs. The announcement was made by U.S. Attorney David Metcalf in Philadelphia.
According to the United States, audits and investigations conducted by the Drug Enforcement Administration (DEA) at RCA facilities in Pennsylvania and Maryland between 2019 and 2024 revealed that RCA dispensed controlled substances unlawfully, had missing records for certain drugs, and failed to meet other recordkeeping requirements under the Controlled Substances Act (CSA).
Additionally, the government alleges that from 2017 through 2019, RCA billed the Federal Employees Health Benefits Program and Medicaid for treatment services that were not properly provided or documented, which constitutes a violation of the False Claims Act (FCA).
“Drug and alcohol treatment facilities must prescribe and store controlled substances in a manner that comports with rules designed to ensure that dangerous drugs do not fall into the wrong hands. They also must provide treatment services that comply with all governing laws and regulations,” said U.S. Attorney Metcalf. “When they fail in either of those critical duties they will face significant consequences.”
Thomas Hodnett, Special Agent in Charge of the DEA’s Philadelphia Division, stated: “When rehabilitation and treatment centers do not live up to their obligations, our office will vigorously pursue the violations. Careless behavior and failure to adhere to the provisions of the CSA allows for substances to be diverted and sold without accountability.”
Maureen Dixon, Special Agent in Charge of HHS-OIG, added: “This settlement underscores our agency’s steadfast commitment to investigating alleged False Claims Act violations targeting federal health care programs. Unlawful dispensing of controlled substances and billing for unprovided care endanger patients and defraud taxpayers. HHS-OIG will continue working with our partners to hold providers accountable and protect patient safety.”
Derek M. Holt, Special Agent in Charge of OPM-OIG, said: “Patients seeking to recover from addiction should be able to trust that treatment facilities will provide safe, legitimate care in support of their health. We thank our dedicated staff and federal law enforcement partners for holding accountable those facilities that instead seek to exploit vulnerable federal employees and their family members.”
The settlement resolves a lawsuit filed under whistleblower provisions of the FCA. A former Outcomes Supervisor at RCA’s corporate headquarters brought forward claims on behalf of the government; this individual will receive $230,000 as part of the settlement.
The case was handled by Assistant U.S. Attorneys Peter Carr and Charlene Keller Fullmer along with former auditor Dawn Wiggins from the U.S. Attorney’s Office for the Eastern District of Pennsylvania.
Officials emphasized that these are allegations only; there has been no determination of liability.
