Summit BHC New Jersey, False Claims Act, New Jersey 2022

Camden, N.J. – In a shocking turn of events, Summit BHC New Jersey, LLC, d/b/a Seabrook, a drug and alcohol rehabilitation facility in Bridgeton, New Jersey, has agreed to pay $19.75 million to resolve allegations that it violated the federal False Claims Act, U.S. Attorney Alina Habba announced today.

As alleged, Seabrook submitted claims to the Community Care Program of Veterans Health Administration (“VHA”) and New Jersey’s Medicaid program for short-term residential treatment and partial hospitalization care for which it was not properly licensed or contracted and misled State inspectors.

The settlement resolves allegations relating to the care provided and billed by Seabrook, principally to the VHA Community Care Program. The United States alleged that, during the period from January 1, 2022 through December 31, 2024, Seabrook provided services for which it had no license; sought to conceal those improperly performed services from state inspectors; failed to employ a sufficient number of properly-credentialed caregivers; failed to employ a sufficient number of caregivers credentialed in treating patients with both mental health and addiction issues; provided the same care to veterans it provided to other patients, while claiming to be providing specialized care; and kept false, inconsistent, and inadequate records of the care provided to veterans and other patients.

“Today’s resolution demonstrates once again this Office’s commitment to ensure that America’s veterans receive the care they deserve and for which the government has paid. Veterans and Medicaid recipients must receive care from fully qualified, licensed providers in facilities that meet state law in all respects. We stand ready to enforce these standards and protect the Americans who need this care.”

– U.S. Attorney Alina Habba

This civil settlement reinforces the VA OIG’s commitment to safeguarding the integrity of VA’s healthcare programs and preserving taxpayer funds,” said Special Agent in Charge Christopher Algieri with the Department of Veterans Affairs Office of Inspector General’s Northeast Field Office. “Providers who participate in the VA Community Care Program must be licensed and follow state and federal law when billing the VA. The VA OIG will continue to work with the U.S. Attorney’s Office and other law enforcement partners to thoroughly investigate providers who fail to meet these standards in providing healthcare to our nation’s veterans.”

The civil settlement includes the resolution of claims brought under the qui tam or whistleblower provisions of the False Claims Act by a former Seabrook employee. Under those provisions, a private party can file an action on behalf of the United States and receive a portion of any recovery. In this matter, the relator is receiving at least approximately $3,555,137.28 as her share of the recovery in this case.

Seabrook cooperated in the investigation and resolution of this matter, including by independently investigating the matter, implementing remedial measures, and disciplining responsible individuals.