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US: Va. treatment center operators to pay $6.85m

Wednesday - 3/28/2012, 1:40pm  ET

MARION, Va. - The operators of a now-closed residential treatment center in southwest Virginia have agreed to a $6.85 million settlement with the state and federal governments over alleged substandard psychiatric treatment for adolescents.

The Justice Department announced the settlement Wednesday involving the former Keystone Marion Youth Center in Smyth County. The settlement involves Universal Health Services Inc. and two subsidiaries.

The government says the settlement resolves a whistleblower lawsuit filed by three former therapists at the closed center.

Justice officials say the "disturbing allegations" against Universal Health Services and its subsidiaries involved false records and claims to Virginia Medicaid in connection with shoddy care to emotionally troubled youth at the treatment center in Marion.

The government says the three therapists settled a separate discrimination claim with Universal.

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