Mindpath Care Centers Settles $1.9M Medicare False Claims Allegation

Mindpath Care Centers, North Carolina's largest behavioral health practice, along with former officers Jeff Williams, Abigail Sheriff, and Sarah Williams, have agreed to pay $1.9 million to the U.S. government to resolve allegations of submitting false Medicare claims for psychotherapy and related services. The settlement follows claims that Mindpath systematically billed Medicare for psychotherapy treatments without providing the required documentation of separate and distinct treatment sessions, in violation of Medicare billing rules. Allegations included failure to address internal concerns about billing practices and a focus on income generation at the expense of compliance. The False Claims Act allows the government to recover triple the amount falsely obtained plus penalties and costs; however, the settlement does not constitute an admission of liability by the defendants. The case highlights ongoing regulatory enforcement efforts by the U.S. Attorney's Office and the Department of Health and Human Services Office of Inspector General (HHS-OIG) to address improper billing and protect the integrity of federal healthcare programs. This resolution underscores the importance of accurate and compliant billing practices within behavioral health services to avoid legal and financial penalties.