The former CEO of Addiction Recovery Care (ARC), Kentucky’s largest addiction treatment provider, has been federally indicted and has stepped down immediately from his position. The indictment alleges the executive acted “in order to unlawfully enrich himself” through conduct related to healthcare billing practices.
ARC announced that Cassandra Webb, the president and chief operating officer, will serve as interim CEO while the company “continues to operate normally.” In a statement, ARC said “All facilities, programs and services remain open and fully operational” and that “our leadership team, employees, and clinical staff remain committed to delivering high-quality care and support to the individuals and families we serve.”
The company’s legal counsel stated that “the government has been investigating ARC for healthcare fraud over two years now, with the full cooperation of the company, and they have found no criminal conduct.” The statement added that the CEO “did not defraud anyone, did not gain anything from the transaction at issue, and he has done nothing but deliver high quality care for over a decade to thousands of Kentuckians,” with the company “look[ing] forward to defending this case in court.”
This indictment follows civil legal action against ARC. In January, Angelica Capital Trust sued the company, alleging it committed “massive fraud” in Medicaid and Medicare billing. In April, the Lexington Herald Leader and ProPublica reported an investigation into ARC’s transactions and “alleged billing scheme.” Potential penalties include imprisonment, fines of $250,000 and supervision, as well as forfeiture and restitution.
This article is an AI-assisted summary. All facts and figures are drawn from the original report: https://thelevisalazer.com/former-ceo-of-addiction-recovery-care-federally-indicted/