Treatment Center and Lab to Pay for Fraudulent Drug Testing | The Fix
facebook twitter RSS
HOT TOPICS: Alcoholism  Addiction  AA  Cocaine  Heroin

Treatment Center and Lab to Pay for Fraudulent Drug Testing

Two Kentucky-based companies will pay the U.S. $15.75 Million after getting caught fraudulently billing for unnecessary urine tests.


Selfrefind Photo via

By Paul Gaita


| Share

The former owners of a chain of opiate addiction recovery centers have agreed to pay the U.S. government $15.75 million in order to resolve allegations that they violated the False Claims Act by fraudulently billing federal health care programs for unnecessary urine tests.

According to a press release from the Office of the U.S. Attorney of the Eastern District of Kentucky, the drug screening tests in question were conducted in 2010 as a mandatory part of treatment for patients at SelfRefind, a chain of 12 addiction recovery clinics located throughout Kentucky and Ohio. The chain’s one-time owners, Dr. Bryan Wood and Dr. Robin Peavler, then automatically referred the results to PremierTox, a laboratory also owned by Wood and Peavler. According to the government’s allegations, PremierTox did not have the capacity to handle the large volume of drug screens sent to it by SelfRefind and froze the samples in a storage unit for many months before performing the additional tests.

By that point, the results yielded by PremierTox were no longer needed for the patients who had submitted the samples. Not only did the laboratory conduct the unnecessary tests, they also submitted false claims that misidentified the class of drugs sought in the screens in order to receive a higher reimbursement from Medicare and Medicaid.

Approximately $2.74 million of the reimbursement will be paid to the Commonwealth of Kentucky, which will allow the state to recover its share of the Medicaid funds. In addition to its financial requirements, PremierTox has agreed to undertake substantial internal compliance reforms and commit to a third-party review of its claims to federal health care programs for the next five years.

A spokesperson for SelfRefind issued a statement which noted that Wood and Peavler no longer own the chain, and that the current problem will not cause any delay in their services, which have been conducted at a new facility since November 2012.

Rehabilitation Directories

Most Popular
Sober Living
Suboxone: Trading One Prison Cell for Another

Suboxone seemed like a get-out-of-jail-free card, the answer to my opiate addiction. Instead, I had a new ten-year addiction, complete with thinning hair and lost motivation.

The Rehab Review
Cliffside Malibu

The “beach-house-relaxed” Cliffside Malibu claims to provide an oasis for recovering addicts and alcoholics. And that’s just what you'll get—if you’ve got the cash.

Morningside Recovery

For a “rehab near the beach” experience that isn’t quite as costly as similar SoCal competitors, head to this Newport Beach treatment facility.

AToN Center

Whether you’re interested in the 12 Steps, SMART Recovery, or holistic treatments, this luxurious, appealing and commendable 4.5 star (our system doesn't yet show the 1/2 star) San Diego rehab has a program for you. 


This exclusive Northern California rehab is all about client choice—as well as golf outings, Buddhist field trips and keeping up with the office.

Capo By The Sea

Capo By The Sea offers an executive rehab program complete with medical detox and a focus on dual-diagnosis issues, as well as an outpatient option in an environment that exudes the kind of beach house optimism one would expect from an Orange County recovery outfit.

Journey Malibu

Want many of the luxury amenities A-listers have come to expect—including an enormous backyard with a pool and patio, an herb garden, a volleyball net and a spectacular vista of the Santa Monica mountains—with a recovery program to match?

The Ultimate Guide to Rehab

What you need to know when choosing an addiction treatment center.

the fix tv