Addiction Recovery Care Settles $16.2 Million Kentucky Medicaid Fraud Complaint

On July 16, 2026, Addiction Recovery Care LLC (ARC), an addiction treatment provider organization in Kentucky, entered a final settlement agreement with the federal Department of Justice in which it will pay a civil judgment of $16.2 million. The settlement resolves a federal whistleblower complaint and a Medicaid fraud investigation of ARC and its affiliates Pioneer Health Group, LLC, and Science Hill Family Care, LLC.

The whistleblower complaint was filed in April 2023 by current and former ARC employees under the qui tam provisions of the False Claims Act, which allow private individuals to bring allegations of fraud on . . .