Addiction Recovery Care

Kentucky Gov. Andy Beshear loosened Medicaid restrictions in 2020 to expand access to drug treatment during the pandemic, leading to record treatment slots but also rising concerns over fraud, subpar care, and escalating costs. Experts warned of exploitative billing practices, particularly by Addiction Recovery Care, the state's largest drug treatment provider, which may have falsified billing under the relaxed rules.

Timmy G. Robinson Jr., founder of Addiction Recovery Care (ARC), a Kentucky drug treatment company, was indicted on wire fraud and money laundering charges for allegedly selling IRS tax credits fraudulently. The FBI has investigated ARC for Medicaid fraud since 2024, with former employees and clients reporting false billing practices. Robinson’s attorney claims the charges stem from a civil dispute with investors.

The founder of Addiction Recovery Care has been indicted for wire fraud and money laundering. The charges involve allegations of financial misconduct.

The Lexington Herald-Leader and ProPublica are investigating Addiction Recovery Care, a former Kentucky residential addiction treatment service provider, after allegations of falsely billing Kentucky Medicaid for millions. The investigation is seeking experiences from former and current clients and staff. The goal is to understand the issues from all sides and guide reporting.

Addiction Recovery Care (ARC), Kentucky's largest drug rehab center, faced allegations of fraudulently billing Medicaid for addiction treatment services. Federal investigators and former employees claim the company pressured staff to falsify billing reports, despite being praised by government officials and media outlets.