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Mistakes That Could Lead To Fraud Charges For Addiction Treatment Providers

On Behalf of | Nov 15, 2022 | White Collar Crime |

With the opioid epidemic and other drug abuse problems sweeping through the nation, Michigan’s addiction treatment centers are working as fast as they can to help people. Unfortunately, in this frenzied state, it’s easy to make mistakes. Some of these mistakes could lead to fraud charges for addiction treatment providers.

In this blog post, we will discuss some of the most common types of fraud and scams that can happen in the field of addiction treatment, and how accusations of these behaviors can destroy a treatment center’s business.

Misrepresentation

Fraud is a misrepresentation of fact, made for monetary gain. If a treatment center, while trying to attract patients, makes false statements or leaves out material information about its facilities or services, it may be committing fraud. This could expose the center to civil lawsuits and/or criminal charges.

Patient brokering

Treatment centers cannot legally pay brokers a kickback or finder’s fee in exchange for having the broker refer a patient to the facility. A related type of fraud is known as lead buying, in which call centers charge a commission to treatment centers in exchange for sending patients their way.

Insurance fraud

Treatment facilities are sometimes charged with fraudulently overcharging insurance companies, For instance, some treatment centers have been accused of billing insurance companies hundreds of dollars for urine tests that actually cost only $10. Similarly, facilities may bill insurance companies for more of these tests than they actually used.

In some more elaborate schemes, some treatment centers have allegedly signed up their patients for multiple insurance policies in an effort to maximize the amount the facility can be reimbursed by insurance.

Defending your business

It’s not hard to see how something like a mistake in accounting can give rise to an accusation of fraud for a treatment center.

Defending against these accusations can be very disruptive to the business and hurt its reputation. In the worst cases, the accusations can lead to criminal charges that can destroy a business, ultimately hurting the vulnerable people who need its services.

Attorneys with experience in white collar criminal defense help treatment centers defend their rights and their reputations.