Recovery Centers of America (RCA) has agreed to pay a total of $2 million to resolve allegations that it violated federal laws related to the handling of controlled substances and the provision of treatment services, according to an announcement from United States Attorney David Metcalf.
The settlement includes $1 million addressing claims that RCA failed to follow the Controlled Substances Act (CSA), which is intended to prevent misuse or illegal diversion of prescription drugs. The U.S. government alleges these violations stemmed from audits and investigations by the Drug Enforcement Administration (DEA) at RCA’s Pennsylvania and Maryland locations between 2019 and 2024. According to authorities, RCA improperly dispensed controlled substances, had missing drugs in its records, and did not meet certain CSA recordkeeping standards.
An additional $1 million will settle claims under the False Claims Act (FCA). The government asserts that between 2017 and 2019, some RCA facilities billed federal programs—including Medicaid and the Federal Employees Health Benefits Program—for treatment services they did not adequately provide or document.
“Drug and alcohol treatment facilities must prescribe and store controlled substances in a manner that comports with rules designed to ensure that dangerous drugs do not fall into the wrong hands. They also must provide treatment services that comply with all governing laws and regulations,” said U.S. Attorney Metcalf. “When they fail in either of those critical duties they will face significant consequences.”
“When rehabilitation and treatment centers do not live up to their obligations, our office will vigorously pursue the violations,” stated Thomas Hodnett, Special Agent in Charge for DEA’s Philadelphia Division. “Careless behavior and failure to adhere to the provisions of the CSA allows for substances to be diverted and sold without accountability.”
“This settlement underscores our agency’s steadfast commitment to investigating alleged False Claims Act violations targeting federal health care programs,” said Maureen Dixon, Special Agent in Charge at HHS-OIG. “Unlawful dispensing of controlled substances and billing for unprovided care endanger patients and defraud taxpayers. HHS-OIG will continue working with our partners to hold providers accountable and protect patient safety.”
“Patients seeking to recover from addiction should be able to trust that treatment facilities will provide safe, legitimate care in support of their health,” commented Derek M. Holt, Special Agent in Charge at OPM-OIG. “We thank our dedicated staff and federal law enforcement partners for holding accountable those facilities that instead seek to exploit vulnerable federal employees and their family members.”
The case was brought under whistleblower provisions of the FCA by a former Outcomes Supervisor at RCA’s headquarters in King of Prussia, Pennsylvania. As part of this settlement, this individual will receive $230,000 as a share of the recovery.
The resolution resulted from cooperation among several agencies: The United States Attorney’s Office for the Eastern District of Pennsylvania led efforts alongside DEA, OPM-OIG, and HHS-OIG.
Assistant U.S. Attorneys Peter Carr and Charlene Keller Fullmer handled this matter along with former auditor Dawn Wiggins.
Authorities emphasized that these resolved claims are allegations only; there has been no finding or admission of liability.
