Florida company Ethema Health Corporation announced Wednesday it signed a letter of intent to purchase the Kentucky facilities of Addiction Recovery Care — the company that grew in recent years to be the largest drug treatment provider in the state.

Known as ARC, the company became a target of an FBI investigation last summer related to potential Medicaid fraud, subsequently laying off many staff and closing facilities over the past year.

According to Ethema’s owner, ARC will use part of the funds from its purchase to pay the U.S. Department of Justice as part of a pending settlement over the Medicaid fraud investigation.

In an interview with Kentucky Public Radio, CEO Shawn Leon of Ethema — operating in the state as ARIA Kentucky — said his intent to purchase ARC facilities was first d

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