North Metro Medical Center in Jacksonville
The U.S. Department of Justice said Tuesday that Allegiance Health Management Inc. of Shreveport, Louisiana, and four of its hospitals agreed to pay $1.7 million to resolve False Claims Act allegations.
In a news release, the Justice Department said that, beginning in 2005, Allegiance provided outpatient psychotherapy services to Medicare beneficiaries who did not qualify for reimbursement. The department said some patients’ medical conditions didn’t require the treatments; in other cases, patients received an “inappropriate level of treatment.” The department said some of the therapy “was primarily recreational or diversional in nature, and was not therapeutic.”
“The Department of Justice recognizes the value of accessible mental health care, but will not tolerate companies that seek to exploit our most vulnerable populations by delivering inappropriate or worthless services,” Acting Assistant Attorney General Chad D. Readler said in a news release. “The Department of Justice is committed to holding accountable those who waste taxpayer dollars and place profit above the legitimate needs of patients.”
Allegiance defendants in the case are: Allegiance Health Management Inc.; North Metro Medical Center of Jacksonville, also known as Allegiance Hospital of North Little Rock; Allegiance Behavioral Health Center of Plainview, Texas; Allegiance Specialty Hospital of Kilgore, Texas; and Sabine Medical Center, also known as Allegiance Hospital of Many, Louisiana. The department previously reached settlements with more than 20 other hospitals in the matter.
In addition to the hospital in Jacksonville, Allegiance’s Arkansas holdings include Eureka Springs Hospital and River Valley Medical Center in Danville.
Arkansas Business reported last year about lawsuits and a revolving door of administrators at North Metro.
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