Fraud has become a multimillion-dollar problem in America’s booming rehab industry, according to state officials, lawsuits filed by insurers and former clients, and federal indictments and convictions.
The rehabs are often in locations that people might be tempted to travel to, such as beachside cities in Florida. It’s become especially prevalent in California, where operators have discovered a steady stream of revenue by luring people with addiction from across the country and billing their private insurance. Lawsuits and federal cases allege that rehabs can charge insurance hundreds of thousands of dollars for a few months’ stay, but offer little in the way of treatment.
When the money runs out, they kick the patients out without support or referrals, regardless of whether or not they’ve recovered—a practice known as “patient dumping” or “curbing.”
In court filings, these rehabs generally blame the insurers for trying to get out of paying for legitimate treatment by filing lawsuits.
Yet another frustrating story showing the corruption that is engendered by public money.
Why can't Californians learn this lesson already?
Also, another reason why I don't necessarily blame insurers for being stingy with claims. There are a ton of fake doctors and fake treatment centers out there!