Oglethorpe Inc. and three top executives agreed to pay $32 million to resolve False Claims Act allegations tied to Medicare overpayments at behavioral health facilities.
According to the DOJ, Oglethorpe, its founder Robert Cohen, CEO John Picciano, and COO James O’Shea allegedly failed to return overpayments that the company’s own consultants had identified.
The alleged overpayments involved Medicare beneficiaries admitted to Ridgeview Behavioral Hospital, Georgetown Behavioral Hospital, and The Woods at Parkside, despite allegedly not qualifying for inpatient psychiatric care.
The case stands out because Oglethorpe had already entered a 2021 Corporate Integrity Agreement after an earlier FCA settlement. Following alleged violations, the defendants agreed to a 10-year exclusion from Medicare, Medicaid, and all federal health care programs beginning in July 2026.
The lawsuit was filed by four former Oglethorpe employees under the FCA’s whistleblower provisions. Their relator share has not yet been determined.
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