ASHLAND, Ky. (July 16, 2026) — Addiction Recovery Care (ARC), one of the largest providers of addiction treatment and recovery services in Kentucky, announced today that it has successfully resolved two major legal and financial matters. The organization has reached a settlement with the Civil Division of the U.S. Department of Justice (DOJ) regarding historical Medicaid billing practices and has concluded a separate commercial dispute with Clear Cove Capital.
The dual resolutions mark a highly anticipated milestone for the Ashland-based provider as it seeks to strengthen its operations and refocus on its clinical mission across the Commonwealth.
Resolving Billing and Commercial Disputes
The settlement with the DOJ officially brings a close to the department’s civil claims regarding ARC’s past billing practices. According to ARC, the organization worked transparently and cooperatively with federal officials and other regulatory authorities throughout the investigation to identify, review, and resolve the outstanding billing issues.
“Reaching a resolution with the Department of Justice represents an important milestone for ARC,” said Cassandra Webb, President and Interim Chief Executive Officer of Addiction Recovery Care. “We approached this process transparently, cooperatively, and worked diligently to identify and resolve the billing issues involved. The resolution provides greater certainty for our organization and allows us to move forward with an enhanced focus on compliance, accountability, and the delivery of high-quality treatment services.”
In a separate matter, ARC has also reached a mutual, confidential agreement with Clear Cove Capital. The commercial dispute stemmed from issues surrounding the issuance and financing of Employee Retention Tax Credits. Both parties worked together to resolve their respective claims, concluding the dispute entirely.
A Focus on Internal Reforms
Over the last two years, ARC has taken aggressive internal steps to modernize its infrastructure. The provider has implemented increased financial and management oversight, stronger internal billing and compliance controls, and heightened accountability measures across its network.
With these past matters resolved, ARC leadership emphasized that its primary focus remains on the thousands of Kentuckians who rely on the organization for substance use disorder treatment.
“Resolving these past disputes allows management to concentrate on strengthening the company, supporting our employees, and continuing to provide critical addiction treatment and recovery services in communities across Kentucky,” Webb added. “We understand the responsibility that comes with that trust. Our focus remains on our patients, our employees, and the communities we serve.”
About Addiction Recovery Care (ARC)
Headquartered in Ashland, Kentucky, Addiction Recovery Care operates a comprehensive network of licensed addiction treatment centers throughout the state. ARC provides a full array of outpatient and residential services aimed at helping individuals find hope and achieve long-term recovery.
