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District Court Approves Transition Plan For Clinical And Housing Operations Of Substance Abuse Provider Engaged In A Fra — Settlement

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Preet Bharara, the United States Attorney for the Southern District of New York, and Scott Lampert, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General's ("HHS-OIG") New York Region, announced that a transition plan for NARCO FREEDOM, INC. ("NARCO FREEDOM"), a provider of outpatient chemical dependency clinics and short-term housing in residences known as "three-quarter houses," has been approved in Manhattan Federal Court. In April 2015, NARCO FREEDOM was enjoined from engaging in a fraudulent kickback scheme and a temporary receiver was appointed to take over NARCO FREEDOM's operations. On September 11, 2015, the Court approved the receiver's plan to transition the substance abuse clinics and the housing operated by NARCO FREEDOM to other healthcare providers. This transition prevents the imminent disruption of clinical services and housing for NARCO FREEDOM residents. U.S. District Judge John G. Koeltl entered the order last Friday.

HHS Office of Inspector General