Eagleville Hospital fined $2.85 million


A whistleblower, someone who has information of unethical or illegal activity of a company, usually from an insider’s perspective, as come forward to help uncover a substantial amount of false claims being submitted by a local treatment center in Lower Providence Township.

United States Attorney William McSwain announced today that Eagleville Hospital, located at 100 Eagleville Rd. Lower Providence, which provides substance use disorder treatment in Eagleville, Pennsylvania, has agreed to pay $2.85 million to the federal government to resolve allegations that the hospital violated the False Claims Act by submitting claims to Medicare, Medicaid, and the Federal Employees Health Benefits Program (“FEHBP”) for hospital-level detoxification treatment services when the patients were ineligible for admission to receive such services or lacked documentation to support the claims, according to a press release from the Department of Justice. 

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The settlement resolves allegations in a complaint filed in federal court in the Eastern District of Pennsylvania by a whistleblower under the qui tam provisions of the False Claims Act. These provisions allow private citizens to bring civil actions on behalf of the United States and share in any recovery. The whistleblower here will receive over $500,000 of the recovery.

Eagleville Hospital is a 305-bed, independent, non-profit addictions and behavioral health treatment and educational organization. Eagleville is the only area hospital to offer levels of care ranging from acute psychiatric hospitalization to specialty hospitalization to residential care for treating addiction, co-occurring, and mental health disorders, according to their website.

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