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Office of the Vermont Attorney General

Brattleboro Retreat Investigation Concludes No Criminal Misconduct

July 16, 2018

Contact: Linda Purdy, Director Medicaid Fraud & Residential Abuse Unit & Konstantin von Krusenstiern, Vice President, Development and Communications, Brattleboro Retreat, (802) 258-4366

Parties agree to billing practices going forward

The Office of the Attorney General announced today that it has concluded its investigation of the Brattleboro Retreat related to allegations of improper Medicaid claims, finding no criminal misconduct. Other investigating agencies, including the United States Attorney’s Office (USAO), reached the same conclusion. The AGO’s investigation was conducted by its Medicaid Fraud and Residential Abuse Unit after receiving a referral from the Vermont State Auditor.

The AGO investigation did identify several areas of billing deficiencies that need to be corrected, but which did not result in net financial harm to the Vermont Medicaid program.

“We appreciate the Attorney General’s thorough work on this matter and we are pleased with the outcome of the investigation,” said Louis Josephson, president and CEO of the Brattleboro Retreat. “In the last three years, the Retreat has launched a process to analyze and modernize its billing operations and related practices. That work resulted in several upgrades that have measurably improved the hospital’s financial operations. We look forward to continuing our partnership with the State to ensure ongoing accuracy and transparency in our billing operations, and to provide more Vermonters with access to safe, quality mental health and addiction care.”

The Retreat is a critical partner to the State in providing Vermonters with access to quality mental health and substance abuse services. Representatives from the Retreat, the Agency of Human Services (AHS) and the Office of the Attorney General have worked closely over the past several months to ensure the Retreat’s adoption of best business practices with respect to its Medicaid claims filing processes and procedures.

To further this end, the AGO and AHS also announced that the State is entering a memorandum of understanding with the Retreat. The memorandum is designed to correct the billing issues identified in the investigation and to strengthen the State’s relationship with the Retreat going forward.

“This agreement holds the Retreat accountable and is an example of problem solving for a good result for all parties,” said Attorney General Donovan. “We look forward to continuing to work with the Retreat.”

Last modified: July 16, 2018