October 14, 2021
Owners and executives of Massachusetts mental health provider South Bay Mental Health Center, Inc.
have agreed to pay $25 million
to resolve claims that they caused the submission of false claims to the state’s Medicaid program, MassHealth, by billing for services provided by unlicensed, unqualified, and improperly supervised staff members in violation of MassHealth regulations. Defendants H.I.G. Growth Partners, LLC
and H.I.G. Capital, LLC
will pay $19.95 million and defendants Peter J. Scanlon
and Kevin P. Sheehan
, who held executive and board positions at relevant entities, will pay $5.05 million. The case was initiated by the filing of a whistleblower complaint under the Massachusetts False Claims Act. SBMHC previously agreed to pay $4 million to resolve related charges. Mass