Negril Agrees to Settle Allegations of Improper Medicaid Billing

ROANOKE, Va. -- To resolve allegations that Negril Incorporated and its owners violated the False Claims Act and the Virginia Fraud Against Taxpayers Act by causing false claims to be submitted to the Virginia Medicaid Program, the company has agreed to a $1,817,910.60 civil settlement.

The Government alleged that, from January 2021 through May 2022, Negril billed Virginia Medicaid for certain mental health skill-building services under its National Provider Identification (NPI) number. However, the company that actually provided those services to Virginia Medicaid beneficiaries did not have its own NPI, was not credentialed through the Virginia Department of Behavioral Health and Developmental Services and was not enrolled as a Medicaid provider. Under the parties' billing arrangement, Negril submitted the claims to Virginia Medicaid, remitted 75 percent of the Medicaid reimbursement to the other company, and retained the remaining 25 percent.

The Government filed its civil complaint on June 12, 2026, in United States et al. v. Negril Incorporated et al., Docket No. 6:26-cv-00066 (W.D. Va.).

The settlement was the result of a coordinated effort among the U.S. Attorney's Office for the Western District of Virginia, the Office of Inspector General and the Office of Counsel to the Inspector General for the U.S. Department of Health and Human Services, and the Medicaid Fraud Control Unit of the Virginia Attorney General's Office.

First Assistant United States Attorney Robert N. Tracci and Special Agent in Charge Maureen Dixon of the U.S. Department of Health and Human Services announced the resolution.

The matter was handled by Assistant U.S. Attorney Matthew G. Howells and Assistant Attorney General Kimberly M. Bolton of the Virginia Medicaid Fraud Control Unit.

The claims resolved by this settlement are allegations only; there has been no admission of wrongdoing and no determination of liability.