⏱ 2 min read
Journey to Hope Health and Healing, an opioid treatment provider in Rhode Island, and its former CEO, Kenneth L. Richardson, Jr., have been caught in a massive Medicaid scam. Between January 2015 to July 2021, the company knowingly submitted false claims to the Rhode Island Medicaid program for millions of dollars in substance use disorder treatment services that were never provided. The scam was perpetuated at Journey’s outpatient treatment facilities in Rhode Island, which offered methadone-assisted treatment and mental health care services.
The allegations against Journey and Richardson claim that the company failed to provide required treatment plans and adequate counseling services to patients receiving methadone treatment. Furthermore, the company maintained patient caseloads at a volume so high that it was physically impossible for counselors to provide the required services. To cover their tracks, Journey and its management allegedly falsified documents by altering and backdating records to make it appear as though they were complying with accreditation requirements.
In April 2023, the United States and the State of Rhode Island filed a complaint in intervention, which led to the settlement agreement. Under the terms of the agreement, Journey and Richardson will pay $10.2 million to the United States and the State of Rhode Island to resolve their alleged liability under the federal and state False Claims Acts.
The settlement serves as a warning to healthcare providers who engage in fraudulent activities, particularly those who take advantage of vulnerable patients seeking substance use disorder treatment. The case highlights the importance of holding healthcare providers accountable for their actions and ensuring that they provide the necessary care and services to their patients.
📋 Key Facts
- Crime: Fraud & Financial Crimes
- Defendant: Rhode Island
- Location: RI
- Source: DOJ Press Release
