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Connections Community Support Programs Settles Fraud Allegations With $15M

U.S. Attorney David C. Weiss announced today that Connections Community Support Programs, Inc. (“CCSP”) has agreed to the entry of consent judgments totaling over $15,300,000 to resolve two lawsuits brought by the federal government alleging health care fraud arising under the federal False Claims Act and violations of the Controlled Substances Act.  Prior to the sale of its assets in bankruptcy, CCSP provided a variety of mental health and addiction treatment services at numerous locations throughout Delaware.

CCSP has agreed to the entry of a judgment in the amount of $13,757,520.60, plus interest, to resolve claims that CCSP violated the False Claims Act by billing for mental health services performed by individuals whose professional qualifications did not allow them to bill Medicare or Medicaid for reimbursement and by billing Medicaid for mental health services using incorrect procedure codes for the person performing the service, resulting in higher payments than were permitted.  CCSP has also agreed to the entry of a judgment in the amount of $1,621,571, plus interest, to resolve claims that it violated the federal Controlled Substances Act by negligently failing to keep proper records of its use of controlled substances, including methadone and buprenorphine, in its treatment of patients with substance use disorders and by transferring controlled substances between locations without proper documentation.

On April 19, 2021, shortly after the filing of these two lawsuits by the United States, CCSP filed for bankruptcy.  On June 15, 2021, CCSP completed a sale, overseen by the Bankruptcy Court, of its assets and operations to Conexio Care, Inc. and Coras Wellness and Behavioral Health, which are now providing the mental health and addition treatments services formerly provided by CCSP.  The settlement agreements and consent judgments agreed to by CCSP and the United States must still be approved by the Bankruptcy Court and the final amount of any recovery by the United States will be limited by the availability of funds in the bankruptcy estate to pay the United States and other creditors of CCSP.

Read the source article at U.S. Department of Justice

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