Following Financial Troubles, Allegations Of Fraud, Addiction Treatment Center Sovereign Health To Close
In June 2017, FBI agents along with federal and state officials served search warrants at Sovereign’s headquarters and other locations. Though officials haven’t said why they are investigating the company, the raids came following civil lawsuits involving Sovereign and Health Net over allegations that the health company overcharged the insurance carrier.
Orange County Register:
Sovereign Health Tells Workers They Won’t Be Paid; Closes California Drug Rehab Facilities
One of the bigger addiction treatment providers in Southern California, Sovereign Health, is closing its doors amid financial difficulties and an ongoing investigation following allegations of insurance fraud. ... Sovereign Health, which operated centers for recovering drug addicts and the mentally ill, is among many in the addiction industry accused of abusing insurance rules while churning addicts through rehab programs with little regard for their long-term sobriety. (Schwebke, 7/11)
In other news on the opioid crisis —
Why A Stanislaus County Law Enforcement Officer Might Be An Opioid User’s Best Friend
More than 500 Narcan doses have been issued to Stanislaus County law enforcement by Aegis, the recipient of six of 19 California Department of Healthcare Services grants. (Alfaro, 7/12)