A settlement has been reached in a whistleblower class action lawsuit brought against Universal Health Services Inc (UHS) and two subsidiaries, Keystone Education and Youth Services LLC and Keystone Marion LLC, which did business as the Keystone Marion Youth Center. They are accused of providing substandard psychiatric counseling and treatment to adolescents in violation of Medicaid requirements, falsifying records and submitting false claims to the Medicaid program.
The whistleblower's portion of the settlement was not disclosed.
The government interevened on this case in November 2009. The United States alleged that Universal Health Services Inc. and its subsidiaries in Virginia made false records and presented false claims to Virginia Medicaid in connection with sub-standard care to emotionally troubled youth at a residential treatment facility in Marion, Virginia.
