Other investigations of the organization remain
Connections Community Support Programs, Inc. has agreed to consent judgments totaling more than $15 million to resolve two lawsuits brought by the federal government.
The agreements do not affect other investigations involving the bankrupt organization and its former CEO.
The suits alleged health care fraud arising under the federal False Claims Act and violations of the Controlled Substances Act. Before the sale of its assets in bankruptcy, Connections, one of Delaware’s largest nonprofits, providing mental health and addiction treatment services at numerous locations in the state.
CCSP has agreed to the entry of a judgment for $13,757,521, plus interest, to resolve claims that it violated the False Claims Act by billing for mental health services performed by individuals whose professional qualifications did not allow them to bill Medicare or Medicaid for reimbursement. The federal government also alleged that Connections billed Medicaid for mental health services using incorrect procedure codes for the person performing the service, resulting in higher payments than were permitted.
CCSP has also agreed to the entry of a judgment for $1,621,571, plus interest, to resolve claims that it violated the federal Controlled Substances Act by negligently failing to keep proper records of its use of controlled substances, including methadone and buprenorphine, in its treatment of patients with substance use disorders and by transferring controlled substances between locations without proper documentation.
On April 19, shortly after filing these two lawsuits by the United States, Connections filed for bankruptcy protection. On June 15, Connections completed a sale, overseen by the Bankruptcy Court, of its assets and operations to Conexio Care, Inc. and Coras Wellness and Behavioral Health, which are now providing the mental health and additional treatments services formerly provided by Connections.
The settlement agreements and consent judgments agreed to by CCSP, and the Bankruptcy Court must still approve the United States, and the final amount of any recovery by the United States will be limited by the availability of funds in the bankruptcy estate to pay the United States and other creditors of CCSP.
“For many years, Connections was improperly billing government programs for mental health services and failing to properly monitor and document its controlled substances inventory,” said Delaware U.S. Attorney David Weiss. “These settlements, together with the transfer of all of the Connections’ services and operations to providers, finally resolve Connections’ long history of poor legal and regulatory compliance, which jeopardized the provision of important mental health and substance abuse treatment to the residents of the state of Delaware.”
“These allegations depict CCSP as a health care provider that truly disserved patients and their Federal health care programs,” said Maureen Dixon, Special Agent in Charge with the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG). “Falsely billing Medicare and Medicaid demonstrates a lacking regard for the stability of these programs and the beneficiaries who depend on their services. With our law enforcement partners, HHS-OIG continuously strives to swiftly combat such fraud.”
The False Claims Act settlement announced today partially resolves a lawsuit filed under the whistleblower provision of the False Claims Act. The government’s claims are based on a whistleblower suit filed by two former Connections employees. A whistleblower suit, or qui tam action under the False Claims Act, is commenced by an individual, known as a “relator,” filing a complaint under seal in the U.S. District Court, and providing a copy of the complaint and other evidence to the local U.S. Attorney.
The United States then has an opportunity to investigate the claims. The False Claims Act provides the whistleblower with a share of the government’s recovery. Separate from the settlement announced today, the qui tam actions are continuing to pursue additional claims against CCSP and its former CEO Catherine Devaney McKay.
The United States continues to pursue its claims for violations of the Controlled Substances Act against McKay and two other corporate executives, William Northey and Steven Davis, which were not part of the settlement announced here.
Before the federal actions and bankruptcy filing, Connections lost contracts with Delaware’s corrections system.
