JEFFERSON CITY — A Webster Groves-based nonprofit that provides mental health treatment for youths is paying a $1.8 million fine to the federal government after officials admitted they overbilled for services.
Great Circle, which has state contracts to provide an array of services for troubled youths across Missouri, admitted making criminal false statements in its claims, but will be able to continue providing assistance to its clients, many of whom have autism or are in foster care.
Assistant U.S. Attorney Meredith Reiter said Friday that Great Circle signed a non-prosecution agreement acknowledging it falsely said it had provided enhanced supervision to youths at its residential treatment facility, which resulted in higher reimbursement rates.
“These agreements hold Great Circle accountable by requiring it to admit false billing and pay a civil false claims settlement, without jeopardizing continued access to residential treatment services for children in Missouri’s foster care program,†Reiter said.
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The feds and state officials agreed to not prosecute Great Circle because of the nonprofit’s cooperation and the civil settlement agreement.
Plus, state and federal officials say a criminal conviction could jeopardize services provided to youths.
“Our goal is to ensure every child across the state lives in a safe, nurturing environment that will ultimately help them thrive,†said Robert Knodell, acting director for the Missouri Department of Social Services. “We are sending a strong message regarding the care we expect our children to receive, and we will continue to do whatever it takes to help ensure the safety and well-being of Missouri’s children.â€
Great Circle, one of the largest behavioral health organizations for troubled youths in the state, started in 1832 as a home for orphans from the cholera epidemic.
Earlier this month, a spokeswoman for KVC Health Systems told the Post-Dispatch that Great Circle and KVC Missouri finalized an agreement that will “guide their integration†starting April 1.
The announcement of the legal agreement is the result of a multi-year investigation that included a raid of its Webster Groves headquarters by the Federal Bureau of Investigation in 2021.
That raid followed the arrest of three employees on suspicion of child abuse or failing to report it. In response to those arrests, state health officials halted admissions to Great Circle’s youth residential treatment campus.
In a statement issued Friday, Special Agent in Charge Jay Greenberg of the FBI ºüÀêÊÓƵ Division said, “Prioritizing profit over safety can put already vulnerable children in peril.â€
“I’m committed to enforcing the law as written, and that involves ensuring that anyone who defrauds the state is held accountable,†added Missouri Attorney General Andrew Bailey.
As part of the agreement, Great Circle admitted falsely claiming to have provided enhanced services for six residents between 2019 and 2020.
Along with agreeing to cooperate in future health care fraud probes, Great Circle under KVC Missouri also will bolster its in-house ethics program.
KVC is based in Kansas City. Great Circle, formerly one of the fastest growing nonprofits in the state serving foster children and children with special needs, has about 800 employees and facilities statewide.
“The expanded KVC Missouri team will serve thousands of families each year, offering preventative family strengthening services, foster care, children’s mental health treatment, educational academies, and other services from 20 locations including Kansas City, ºüÀêÊÓƵ, and Springfield,†Jenny Kutz said by email.
Asked what will become of the Great Circle headquarters campus in Webster Groves, formerly Edgewood Children’s Center, and the 442-acre residential treatment property near St. James, formerly Boys and Girls Town of Missouri, Kutz wrote that they are still in the early planning stages about all locations.
“What we know for sure is that children’s mental health needs are increasing across Missouri,†Kutz wrote. “Depression and anxiety are on the rise, and suicide is the third leading cause of death for 10- to 34-year-olds. This affects children in foster care as well as other youth in the community. So we’re exploring opportunities to meet the increasing acuity and demand for mental health services.â€
Jesse Bogan of the Post-Dispatch contributed to this report.