Addiction Recovery Care based in Louisa under investigation for fraud by FBI
By Roberta Cantrell
BSN Editor
After contacting The Federal Bureau of Investigation (FBI) Louisville Division, The Big Sandy News has been able to confirm there is an active fraud investigation launched against Addiction Recovery Care.
ARC, which is funded almost entirely through Kentucky’s Medicaid program, has not been charged with any crime but the FBI is asking people with information to fill out an online form “if you believe you were victimized by ARC or have information relevant to this investigation.”
In a recent article in The Kentucky Lantern (an online newsroom dealing with environmental, governmental, health, and economic issues) the following was reported:
“Last year, ARC took in $130 million in Medicaid funds, the government health plan which gets most of its money from the federal government, making it by far the state’s largest provider of substance use services.
Tim Robinson and his wife, Lelia, are the owners of ARC and some related entities which provide them with an annual income of $533,400, according to a 2022 tax filing of a related non-profit company, Odyssey Inc.
From mid-2021 through the end of 2023 Robinson, his corporations, and employees gave at least $252,500 to political committees supporting Gov. Andy Beshear, according to reporter Tom Loftus’ analysis in the Kentucky Lantern of campaign finance records.
The donations to Democrat Beshear were a shift in the giving pattern for Robinson, a lifelong and loyal Republican. He also gave big to Beshear’s opponent in the 2019 governor’s race, Republican incumbent Gov. Matt Bevin.
The Kentucky Lantern’s analysis shows that — including money contributed to Beshear committees — Robinson, his corporations, and employees have made at least $570,000 in political contributions over the past decade as his for-profit company grew.
Robinson also has donated to Kentucky Republican lawmakers including some who wrote recent letters on ARC’s behalf, asking that rate cuts proposed to ARC and other addiction providers be suspended until further study.
The rate cuts of 15% to 20% proposed by three of the six private insurance companies that process state Medicaid claims became public this week at a legislative hearing. ARC and another provider told lawmakers that such cuts would devastate Kentucky’s efforts to turn the tide of addiction to drugs and alcohol.
Six national insurance companies known as managed care organizations, or MCOs, handle the majority of the state’s $16 billion a year Medicaid business. Under contracts with the state, they are paid a fixed rate per member to cover the cost of care.”
When asked by The Big Sandy News about the alleged fraud investigation, ARC CEO Tim Robinson did not respond but referred us to his legal counsel, Jessica Burke.
As of press time, we did not hear from Burke but did receive the following statement from Kyle Collier,
Director of Communications & Web Development
Marketing Addiction Recovery Care, “We have recently learned that there is a federal investigation into ARC. As we all know, healthcare is one of the most highly regulated fields in the country, and addiction treatment is among the most highly scrutinized healthcare services. ARC is a trailblazer in the field of addiction services. We are confident in our program and in the services we offer. We, and our legal counsel, are cooperating fully in the investigation.”
Katie Anderson, Spokesperson for the FBI Division of Fraud did send a statement to The Big Sandy News stating “As the investigation is ongoing, we are unable to provide additional details. Anyone who believes they have relevant information about Addiction Recovery Care should review and complete the questionnaire at https://forms.fbi.gov/arctips.”
ARC employs 500 people in Louisa, has a total employment of approximately 1,350 and served more than 12,000 individuals in its centers last year. ARC has its own private school, job-training programs, transportation service, pharmacy, and test labs.
NOTE: Some information and specific data used in this article was obtained from a previous article in The Kentucky Lantern. If you would like to visit the Kentucky Lantern news site on the internet, you may search kentuckylantern.com.