A former major behavioral health care provider in Delaware is set to pay millions to settle federal lawsuits alleging fraud and misuse of controlled substances.
Connections CSP has agreed to pay more than $15 million in a federal court settlement.
The agreement resolves two suits. The first alleges Connections violated the False Claims Act by billing for mental health services provided by individuals not qualified under federal law, and billing Medicaid with incorrect procedure codes in order to receive higher payments.
The second suit alleges Connections failed to keep proper records of controlled substances, including methadone and buprenorphine—transferring the substances between locations without documentation.
In a statement, U.S. Attoney for the District of Delaware David Weiss said, "Connections’ long history of poor legal and regulatory compliance [sic] jeopardized the provision of important mental health and substance abuse treatment to the residents of the State of Delaware.”
Connections was one of Delaware’s largest nonprofits and provider of behavioral health and substance abuse treatment before filing for Chapter 11 bankruptcy in April, shortly after the lawsuits were filed.
The Bankruptcy Court has since overseen the sale of all Connections assets to two other behavioral health providers,Conexio Care, Inc. and Coras Wellness and Behavioral Health, that are now performing the services formerly provided by Connections.
The federal government is continuing to pursue claims for violations of the Controlled Substances Act against former Connections CEO Catherine McKay and other corporate executives William Northey and Steven Davis.