Hagar and Phillips - Acadia Healthcare Settlement

Acadia Healthcare Settlement

April 6, 2026

The following is from the Tennessee Bar Association Legal News Blog published September 27, 2024.

Acadia Healthcare, a Franklin-based company, has reached a $20 million settlement with the U.S Department of Justice (DOJ). The company was the subject of a New York Times investigation earlier this month and had been accused of defrauding Medicare and Medicaid. According to a press release, prosecutors found that Acadia held patients for longer than necessary and admitted people who did not need in-patient care.

Acadia also was accused of failing to provide adequate staffing, training and/or supervision of staff, which resulted in assaults, elopements, suicides and other harm. According to the Nashville Business Journal, a company spokesperson denied any wrongdoing and said Acadia cooperated with investigators.

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