Massachusetts Behavioral Health Companies Pay $1.4 Million to Settle Alleged False Claims Act Billing Fraud

Nova Psychiatric Services, Patriot Eldercare, and physician-owner Alexandra Accardi resolve allegations involving Medicare, Medicaid, and state insurance programs.
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The $1.4 million settlement brings an end to the government's civil allegations against Nova Psychiatric Services, Patriot Eldercare, and Dr. Alexandra Accardi. AI image
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Two Massachusetts behavioral health companies and their physician-owner have agreed to pay $1.4 million to resolve allegations that they fraudulently billed government healthcare programs for psychotherapy and medication management services that clinicians never performed, federal authorities announced on May 18, 2026.

The settlement involves Nova Psychiatric Services, P.C., Patriot Eldercare, Inc., and psychiatrist Dr. Alexandra Accardi, founder and owner of both organizations. The companies, collectively known as Prime Behavioral Health, operate behavioral health clinics in Quincy and Weymouth, Massachusetts.

Federal investigators alleged that between January 1, 2017, and May 18, 2023, the companies submitted claims to Medicare, Medicaid, and the Massachusetts Group Insurance Commission (GIC) for services that were either not provided or improperly billed. The case also led to the criminal prosecution of former Chief Operating Officer Miguel Saravia, who pleaded guilty to healthcare fraud and was sentenced in 2025.

DOJ Alleges Years of Improper Psychotherapy Billing

According to court documents and federal prosecutors, Nova and Patriot billed federal and state healthcare programs for psychotherapy and medication management services that behavioral health clinicians did not perform.

Investigators alleged that Miguel Saravia directed independent contractors who had no billing or medical training to alter claims before submission. The contractors allegedly added billing codes for additional psychotherapy and medication management services that had not been provided by clinicians. The altered claims were then submitted to Medicare, Medicaid, and the Massachusetts Group Insurance Commission for reimbursement.

Federal authorities further alleged that some claims involved upcoding, a practice in which providers bill for more complex and expensive services than those actually delivered. Prosecutors said Saravia directed individuals to enter Current Procedural Terminology (CPT) codes for therapy services that never occurred and to increase reimbursement by using higher-paying psychotherapy codes.

Employees Reportedly Raised Concerns About Billing Practices

One of the most significant aspects of the case involves allegations that employees repeatedly warned company leadership about the billing practices.

According to the settlement documents, Nova and Patriot employees raised concerns to both Dr. Accardi and Saravia regarding the altered claims and billing procedures. Despite those warnings, investigators alleged that no meaningful changes were made to the billing practices during the period covered by the settlement.

As part of the civil settlement, Nova, Patriot, and Dr. Accardi admitted and accepted responsibility for certain facts underlying the government's allegations. The agreement resolved civil claims and did not constitute a determination of liability by a court.

Former COO Miguel Saravia Pleaded Guilty to Healthcare Fraud

The civil settlement follows a related criminal prosecution against Miguel Saravia, the former Chief Operating Officer of Prime Behavioral Health and later Chief Executive Officer of Dana Group Associates.

In September 2024, federal prosecutors charged Saravia with six counts of healthcare fraud. The charges alleged that he orchestrated a scheme to submit false claims to healthcare benefit programs by directing untrained individuals to enter CPT codes for services that were never provided and to upcode psychotherapy visits.

Saravia pleaded guilty to all six counts. On March 26, 2025, U.S. District Court Judge Allison D. Burroughs sentenced him to three and a half months in federal prison, followed by one year of supervised release. He was also ordered to pay $561,141.89 in restitution.

Federal prosecutors stated that the criminal charges addressed some of the same billing conduct later resolved through the civil settlement.

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Dr. Alexandra Accardi served as the founder, owner, president, and director of both organizations.KATRIN BOLOVTSOVA/Pexels

Whistleblower Lawsuit Triggered Federal Investigation

The case originated from a whistleblower lawsuit filed under the False Claims Act by former employees Jessica Spissinger and Matthew Peculis.

The lawsuit was filed in May 2019 and alleged that Nova, Patriot, and associated leadership knowingly submitted false claims to government healthcare programs. Under the False Claims Act's qui tam provisions, private individuals can file lawsuits on behalf of the federal government and share in any recovery if the allegations are substantiated.

As part of the settlement, the whistleblowers will receive 17.5% of the $1.4 million recovery. Their attorneys credited federal prosecutors and investigators for pursuing the case over several years.

Prime Behavioral Health Clinics Served Massachusetts Communities

Nova Psychiatric Services and Patriot Eldercare operated under the Prime Behavioral Health name and maintained clinic locations in Quincy and Weymouth, Massachusetts.

Dr. Alexandra Accardi served as the founder, owner, president, and director of both organizations. Investigators alleged that the fraudulent billing activity occurred across multiple years and affected claims submitted to Medicare, Medicaid, and the Massachusetts Group Insurance Commission.

The investigation involved multiple agencies, including the U.S. Attorney's Office for the District of Massachusetts, the FBI, the Department of Health and Human Services Office of Inspector General, the Internal Revenue Service Criminal Investigation division, and the Massachusetts Insurance Fraud Bureau.

Settlement Closes Civil Claims but Serves as Warning to Healthcare Providers

The $1.4 million settlement brings an end to the government's civil allegations against Nova Psychiatric Services, Patriot Eldercare, and Dr. Alexandra Accardi. However, the case underscores the significant legal and financial risks healthcare providers face when billing practices fail to comply with federal and state regulations.

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