Potential Fraud in Health Facilities

VIDEO – IT AIN’T THE FIRST TIME –

Aug. 16, 2024 – The addiction treatment center first came under fire in June after the death of two top executives, which led to the company abruptly closing its doors in Pennsylvania, Florida and Connecticut and firing hundreds of employees. This came after prolonged financial struggles and delayed paychecks to employees. James Young, the receiver for RBH, pointed to potential misuse of funds by the company and overvalued assets, a combination which he says the company may not recover from.

“There is no reasonable scenario under which current ownership of [the company] would reopen the facilities,” Young said in the documents.

Receivers can be appointed by the court or government to oversee the assets and affairs of individuals or companies in an effort to pay off debts.

For Retreat, these debts include multiple credit defaults, $1.2 million in unpaid wages for the month of June and costs from healthcare violation investigations, which Young says are still incomplete.

During his investigation into the company’s finances, Young found that some Retreat Pennsylvania employees received bonuses, which he said, “had potentially been tied to referrals of patients discharged from RBH to selected sober living facilities.”

Young did not disclose the names of the employees or the facilities.