Negril Incorporated Settles Medicaid Fraud Allegations

The Danville healthcare company agrees to pay over $1.8 million to resolve claims regarding improper billing practices.

Updated on Oct. 20, 2026 in Financial Crime

Negril Incorporated Settles Medicaid Fraud Allegations

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Negril Incorporated has reached a $1.8 million civil settlement to resolve allegations that it violated the False Claims Act and the Virginia Fraud Against Taxpayers Act. The agreement stems from claims that the company billed the state for services provided by an uncredentialed entity.

Why it matters

The settlement addresses systemic issues involving the misuse of Virginia Medicaid funds, ensuring that provider credentialing and enrollment standards are upheld to protect public resources. It holds the company accountable for submitting false claims to secure reimbursements.

The civil settlement of $1,817,910.60 resolves a complaint filed by the government on June 12, 2026. The matter was handled within the Western District of Virginia.

The players

Negril Incorporated

Negril Incorporated is a healthcare company based in Danville, Virginia, that provides mental health services.

U.S. Attorney's Office for the Western District of Virginia

This federal office is responsible for the prosecution of civil and criminal cases within the Western District of Virginia and operates out of Roanoke.

The details

Negril Incorporated utilized its own National Provider Identification number to bill Virginia Medicaid for mental health services that were actually performed by a non-credentialed, non-enrolled entity. Under the scheme, the firm retained 25% of the collected reimbursements while passing 75% to the outside company.

January 2021 through May 2022 was the period of the alleged fraudulent billing activities.
June 12, 2026, marks the date the government filed the civil complaint in federal court.
October 20, 2026, is the date the civil settlement was announced.

Legal Context

This settlement follows the pattern set by the False Claims Act to recover taxpayer funds lost to fraudulent billing by government contractors. It underscores the ongoing focus by the U.S. Attorney's Office on maintaining the integrity of state-funded healthcare programs.

This case serves as a warning to local healthcare providers regarding strict compliance with Medicaid enrollment requirements. Residents can expect continued federal oversight to ensure that taxpayer-funded services are provided by properly credentialed entities.

The takeaway

Healthcare providers are reminded that billing for services performed by uncredentialed third parties constitutes a violation of federal and state law. Ensuring rigorous administrative oversight is essential to avoid significant financial penalties and government litigation.