A new business model has emerged in some states where for‑profit addiction treatment operators scale by maximizing Medicaid billings: they recruit or bus in clients, inflate or fabricate attendance and services, and rely on rapid public payouts to profit before oversight catches up. The result is both patient exploitation (coerced or sham treatment) and large fiscal losses for state Medicaid programs.
— If true, this model changes debates about addiction policy, Medicaid oversight, and how emergency public funding can be gamed — prompting regulatory, criminal, and policy responses at state and federal levels.
Taylor Six
2026.04.09
100% relevant
Kentucky’s Addiction Recovery Care billed $1.7 billion (2019–2024), was paid $377 million, reportedly instructed staff to fabricate attendance/notes, and bused clients across state lines — concrete elements that exemplify the model.
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