CT Rehab Center Pays $1.3 Million For False Claims: U.S. Atty

NEW HAVEN, CT — A drug abuse rehabilitation center with locations in New Haven and Bridgeport agreed to pay $1.3 million to settle claims that is submitted false claims for services.

New Era Rehabilitation Center entered the agreement with the federal government. The center provided methadone maintenance counseling services to Medicaid patients and were paid a bundle rate that included counseling services.

New Era also submitted claims for psychotherapy services that weren't provided because they were already part of the bundled rate, according to the U.S. Attorney District of Connecticut office.

“For 16 years New Era Rehabilitation Center (NERC) has been a respected and valued member of the New Haven and Bridgeport communities, providing much-needed behavioral health and substance abuse treatment services," said Dr. Ebenezer Kolade, CEO and President of NERC. "NERC has fully cooperated with a recent government investigation into some of its past billing practices and, without admitting any wrongdoing, has reached an agreement in order to settle this matter. This settlement agreement is not an admission of liability – instead, NERC wishes to avoid the disruption of litigation and focus on addressing the state’s devastating opioid crisis and helping patients recover.”

The settlement covers conduct that occurred between 2009 and 2013.

“We must ensure that taxpayers’ health care dollars used for substance abuse treatment are properly spent,” said U.S. Attorney John Durham. “Medical practices and physicians who treat patients for substance abuse must bill their services accurately and honestly. Health care providers who submit false claims to federal health care programs will be held accountable.”

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