KARE 11 Investigates: Recovery Inc.
In “Recovery Inc.,” reporters at KARE 11 in Minneapolis revealed widespread evidence of fraud in Minnesota’s addiction recovery industry, exposing how companies billed taxpayers for services never rendered. The investigation began with tips about dubious billing practices and expanded to uncover systemic issues in government oversight and accountability. A key case involved a double murder where the accused did not receive treatment as claimed by the facility. KARE 11’s reporting highlighted egregious examples, such as billing Medicaid for 203 hours of work by a single employee in one day and charging for movie nights as therapy sessions. The series uncovered a relationship between Kyros, a for-profit entity, and Refocus Recovery, a nonprofit, both founded by Daniel Larson. The investigation showed that Refocus funneled 96% of its taxpayer revenue to Kyros, based on exploiting Medicaid billing practices.
KARE 11’s dedicated journalism, often conducted under threats, exposed these practices by interviewing affected individuals and deciphering complex billing data. Their reporting prompted multiple federal and state investigations, including an FBI raid, a Department of Justice asset freeze, and a criminal indictment. The exposé also led to significant leadership changes, with top executives resigning. Furthermore, the investigation inspired swift legislative reform, passing laws to improve supervision, audit Medicaid billing, and eliminate nonprofits with conflicting interests. The series’ ripple effect included bipartisan legislative hearings, and KARE 11’s courage in challenging an unconstitutional gag order fortified its impact, emphasizing the media’s critical watchdog role in society.
Illustration courtesy of KARE-TV.
View the story