California psychiatric provider to pay $2.75 Million in false claims settlement

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Last Updated on August 19, 2025 by The HD Post Staff

CALIFORNIA – The U.S. Department of Justice (DOJ) announced August 19, that American Psychiatric Centers, doing business under the name Comprehensive Psychiatric Services (CPS), will pay $2.75 million to settle allegations of submitting false psychotherapy claims to government healthcare programs.

CPS, based in Walnut Creek, provides behavioral medicine services to individuals and families. Since at least 2015, CPS has submitted claims using add-on codes 90833 and 90836 for psychotherapy with evaluation visits, which require specific documentation.

The settlement resolves allegations that from 2015 to 2022, CPS submitted fraudulent add-on code claims without providing or properly documenting the services. 

CPS will pay $2.62 million to the U.S. and $134,431 to California.

“Veterans and their families expect and deserve the highest quality healthcare delivered in a safe and accountable setting,” said Veterans Affairs Office of Inspector General, Special Agent Dimitriana Nikolov. 

Nikolov said this settlement is a testament to the VA OIG’s commitment to safeguarding the integrity of VA’s healthcare programs and preserving taxpayer funds.

False Claims Act

The settlement addresses allegations only; no liability has been determined.

The case highlights the government’s focus on combating healthcare fraud using the False Claims Act. Report potential fraud, waste, or abuse to HHS at 800-HHS-TIPS (800-447-8477).

RELATED: California man pleads guilty to shooting at Sheriff’s helicopter after birthday party

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