Oglethorpe Pays $32 Million to Settle Whistleblower Suit; Excluded from Medicaid for 10 Years

May 28, 2026

Federal prosecutors say Florida-based behavioral health company Oglethorpe Inc. and several top executives have agreed to pay $32 million to resolve allegations they improperly kept Medicare overpayments tied to psychiatric and substance use treatment facilities in Ohio. The U.S. Department of Justice alleged the company knowingly failed to return money connected to patients who did not qualify for inpatient psychiatric treatment.

The settlement also names company founder Robert Cohen, CEO John Picciano, and COO James O’Shea. Federal officials say the alleged conduct occurred from 2021 to the present and involved two psychiatric hospitals and one substance abuse clinic. The case originated from a whistleblower lawsuit filed under the False Claims Act by four former employees: registered nurse Whitney Treloar, former Chief Fiscal Officer Darren Caruso, former Regional Director of Operations Jeanette Skinner, and former Director of Financial Operations Joel Snook.

This is not the company’s first major federal settlement. In 2021, Oglethorpe and affiliated Ohio facilities agreed to pay $10.25 million over allegations involving unnecessary psychiatric admissions and illegal patient inducements, including free transportation for patients. As part of the new resolution, the company and executives also agreed to a 10-year exclusion from Medicare, Medicaid, and other federal healthcare programs beginning in July 2026.Ogle

(Source: U.S. Dept. of Justice Office of Public Affairs, May 27, 2026)