Addiction Recovery Care Temporarily Closes 4 KY Locations Amid Potential Medicaid Fee Cuts

Addiction Recovery Care, a Louisa-based provider of addiction treatment services with more than 30 locations in 22 counties, is temporarily closing four of its facilities in the wake of potential Medicaid reimbursement rate cuts, the company in a press release Wednesday.

The health care provider, which has an outpatient center in Louisville, is temporarily closing locations in Boyd, Pulaski, Jackson and Fleming counties.

“These decisions were not made lightly, and we are dedicated to supporting our team members and the communities affected by these changes,” said Vanessa Keeton, vice president of marketing for Addiction Recovery Care. “Above all, the safety and care of our customers remains our highest priority. We are still available 24/7/365 for patients and families in need.”

Addiction Recovery officials cited Medicaid reimbursement rate cuts proposed by managed care organizations (private insurance companies hired by the commonwealth to process Medicaid payments) as a reason for the closures.

The rate cuts could affect addiction treatment and mental health providers across the state, company officials said.

In a statement, Tyler Glick, a spokesman for the Kentucky Association of Health Plans, a trade association that represents the state’s six managed care organizations, said its members “work in partnership with providers of quality and reliability of behavioral health and substance use disorder treatment services.” “

“Health plans strive for the best networks possible and are encouraged by the state to prioritize outcomes for plan members and value-based care. Health plans use many tools to monitor outcomes so that reward high-performing providers who are delivering solid results.” Glick said.

The closure of the addiction recovery care facility comes after the Louisville FBI opened an investigation into the company for health care fraud in August, though no criminal charges have been filed in that case .

This article originally appeared in the Louisville Courier Journal: Addiction recovery care facilities closing due to Medicaid rate cuts