Civil Plaintiff
Former Mental Health Care Executives Agreed to a $25 Million Settlement After Fraud Claims
A private equity firm and the former executives of South Bay Mental Health Center, Inc. have agreed to settle for $25 million, accused of submitting fraudulent claims to Massachusetts’ Medicaid Program, MassHealth in the largest settlement of its kind.
The settlement is meant to resolve allegations that HIG Growth Partners and HIG Capital, Peter Scanlon and Kevin Sheehan knew that SBMHC was providing unlicensed, unqualified and unsupervised services in violation of regulatory requirements and caused fraudulent claims to continue to be submitted to MassHealth by not adopting recommendations to bring SMBHC into compliance, according to a statement from the office of Attorney General Maura Healey.
