Kentucky Addiction Treatment Center Settles Fraud Claims

Feb 10, 2014

Two doctors and a chain of addiction recovery centers operating in Kentucky have reached an agreement with the federal government to settle fraud allegations. 

SelfRefind, as well as its owners Dr. Bryan Wood and Dr. Robin Peavler will pay $15.7 million dollars to resolve allegations that they fraudulently billed Medicare and Kentucky’s Medicaid program for unnecessary and excessive urine tests. 

The business required clients to take urine tests to make sure that they weren't abusing drugs and that they were using treatment medication as prescribed. 

According to federal prosecutors, the chain submitted reimbursement claims for tests that were medically unnecessary or more expensive than the actual tests that were performed.

“Federal health care programs are essential to many of our citizens,” said U.S. Attorney Kerry B. Harvey in a news release. “We will not tolerate efforts by misguided providers to unfairly enrich themselves at the expense of these programs and the taxpaying public."

SelfRefind has 12 locations in Kentucky for treating addiction to opiates and prescription painkillers...Danville, Frankfort, Hazard, Middlesboro, Pikeville, Barbourville, Morehead, and Carrollton. 

The commonwealth will receive $2.7 million as its share of the settlement.