Recovery Centers of America settled for $2 million — $1 million for failing to prevent controlled substance diversion and $1 million for billing the government for inadequate drug and alcohol treatment services.

Recovery Centers of America (Philadelphia, PA) — Controlled Substance Diversion / Inadequate Treatment

Outcome: Settled for $2 million — $1 million for Controlled Substances Act violations enabling diversion and $1 million for False Claims Act violations billing for inadequate treatment services.

Recovery Centers of America (RCA), a drug and alcohol treatment provider operating in Pennsylvania, settled dual enforcement actions arising from two distinct compliance failures. First, RCA failed to comply with Controlled Substances Act provisions designed to prevent the illegal diversion of controlled substances, creating a pathway for drugs intended for patient treatment to be diverted for illicit purposes. Second, RCA billed the federal government under the False Claims Act for drug and alcohol treatment services that were not adequately provided to patients.

The False Claims Act violation is particularly significant in the context of substance abuse treatment: patients seeking recovery depend on receiving meaningful therapeutic services, and billing for inadequate care represents a dual harm — financial fraud against the government and clinical failure against vulnerable patients in recovery.

The U.S. Attorney's Office for the Eastern District of Pennsylvania announced the $2 million settlement on December 10, 2025, with $1 million allocated to each category of violation.

Primary Source: Recovery Centers of America Agrees to Pay $2 Million to Resolve Allegations That It Violated the Controlled Substances Act and the False Claims Act by Mishandling Controlled Substances and Providing Inadequate Treatment Services