Narconon, a Georgia drug treatment clinic, is facing serious charges of insurance fraud. The Norcross, Georgia center was recently raided under various search warrants, with documents and other items being seized by police. It is suspected that the total fraud being alleged in this case amounts to approximately $3 million. The treatment clinic could find itself facing civil lawsuits in addition to the current fraud investigation that appears to be ongoing.
Almost 900 insurance claims have been filed by the Georgia company in three years and all of them are being scrutinized. According to the report, two major insurance providers have been billed and Narconon has been paid around $1 million for the billed claims. There has been no statement from the company except that they are aware of the investigation.
Trouble for the Georgia drug-treatment facility began when a newspaper reported that over $150,000 worth of services has been billed yet had never been provided. That information triggered a full scale investigation by several county officials and culminated in the recent search of the facility. Narconon has claimed that all patients were made aware of payment methods and insurance procedures.
The center was founded by the Church of Scientology and two of the doctors that were named on the affidavit are cooperating with authorities. One of them claims that she was paid with cash or check but the she never knew that the center was billing insurers in her name. Additionally, the center recently lost their license to operate based on accusations that they were running a housing center when they were only licensed to operate an outpatient facility.
Families of patients are testifying that they had been charged exorbitant amounts of money for non-existent or ineffectual treatment. Based on the consequences that have come thus far, it appears that there could be more legal trouble ahead for Narconon from the fraud charges. There is the possibility that former patients and doctors could also bring civil litigation against the company.
Source: The Atlanta Journal-Constitution, “Search warrants outline millions in suspected fraud at drug rehab clinic,” Christian Boone, May 9, 2013