published Thursday, April 17th, 2014

New Life Lodge to pay $9.25 million over fraud claims

BURNS, Tenn. — Owners of the New Life Lodge drug and alcohol treatment facility in Burns have agreed to pay $9.25 million to settle allegations of TennCare fraud.

According to the state attorney general's office, the state claims that CRC Health Group provided substandard services, repeatedly exceeded its patient capacity and caused third-party pharmacies to bill the TennCare program for prescription drugs that New Life Lodge was obligated to provide.

The state claims the fraud took place between 2006 and 2012.

The settlement is the result of a joint investigation between the state of Tennessee and the United States. The recovery will be divided between the state and federal governments, with Tennessee receiving approximately $3.4 million.

CRC has not admitted to any wrongdoing.

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