Riverside Recovery Services to Pay $765,000 for Alleged Violations of Civil Monetary Penalties Law

In a sobering development that highlights the ongoing challenges in healthcare oversight, Amy Smart, former Riverside Recovery Founder & CEO acknowledged her role in an extensive Medicraid billing scheme. Standing before the U.S. District Court for Southern Ohio on October 16, Smart admitted to orchestrating a sophisticated fraud that spanned nearly five years.

The scheme, which unfolded between July 2018 and January 2023, involved deliberately fabricating claims for phantom services - counseling and case management that existed only on paper. The fraudulent billing amounted to $345,093, funds that were meant to serve those in genuine need of mental health and recovery services.

On March 8, 2022, Riverside Recovery Services, LLC (RRS) in Chesapeake, Ohio, reached a settlement agreement of $765,867.77 with the Office of Inspector General (OIG). This settlement addresses allegations that RRS employed an individual who was barred from participating in any Federal health care program. The OIG's investigation found that the excluded individual, who held the roles of intake coordinator and site manager, provided items or services that were billed to Federal health care programs.

What makes this case particularly troubling is how it undermines the very foundation of trust in our healthcare system. As an executive director, Smart was entrusted with overseeing vital recovery services for vulnerable individuals. Instead, she chose to exploit the system, diverting precious resources from Ohio's Medicaid program - funds that could have provided real support to those struggling with addiction and mental health challenges.

This case serves as a stark reminder of how white-collar crime in healthcare not only damages institutions but also potentially deprives communities of essential services they desperately need. Smart's admission of guilt brings to close a chapter that exemplifies the importance of oversight and accountability in our healthcare institutions.

The outcome of this case now rests with the federal court, as the community awaits the final determination of consequences for these actions that betrayed both public trust and professional responsibility. Amy smart will receive a slap on the wrist including two years probation, pay restiution for $345,000, and will avoid going to prison.