Feds Announce $17M Settlement with Health Care Firm in W.Va.

Federal prosecutors say they’ve reached a $17 million settlement with a health care company accused of Medicaid fraud in West Virginia.

U.S. Attorney Mike Stuart announced the civil settlement with Acadia on Monday, saying it’s the largest health care fraud settlement in state history.

Stuart says Acadia, though its subsidiary CRC Health, billed Medicaid for $8.5 million in marked-up costs for blood and urine tests that weren’t done at its drug treatment centers and instead performed by a lab in California.

He says the company has also agreed to implement a risk assessment program and hire an independent organization to review its Medicaid claims.

Acadia didn’t immediately respond to a voicemail seeking comment.