Preferred Family Healthcare seeking buyer for Arkansas operations

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A troubled Missouri-based behavioral health nonprofit previously serving Mountain Home Public Schools confirmed Wednesday it is in negotiations with an Arkansas organization to potentially acquire all of its non-contractual services in Arkansas.

Arkansas Times reports the potential purchasing organization for Preferred Family Healthcare (PFH) of Springfield was left unnamed.

PFH grew rapidly in Arkansas over the past several years, acquiring several smaller nonprofits and becoming one of the largest behavioral health providers in the state. But as PFH’s reach expanded, its leadership team came under increasing FBI scrutiny for their alleged role in illicitly influencing state lawmakers in Little Rock for personal gain.

Federal and state investigators have accused multiple former PFH executives of engaging in schemes to bribe Arkansas legislators, embezzle money from the nonprofit and defraud the Medicaid program of millions of dollars through improper billing practices.

The suspension of PFH from the Medicaid program is raising concerns over mental health services in the area, something the Mountain Home School Board addressed at its July meeting. State agency officials suspended the behavioral health provider in June following the arrest of a former employee.

Earlier the Arkansas Times reported the company received $33 million in Medicaid funds in 2016. Preferred Family Healthcare was notified its contracts for non-Medicaid services, which includes substance abuse treatment, youth services and therapeutic foster care, were terminated.

Preferred Family Healthcare operates multiple locations in North Central Arkansas, including DaySpring Behavioral Services, which along with Ascent Children’s Health Services, provides mental health counseling at Mountain Home schools. The school also has one full-time therapist, Matt Sutton, on staff.

To address the loss of services with Mountain Home Schools, Superintendent Dr. Jake Long asked the board to approve funding for additional mental health therapists.

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