AG clears final two behavioral orgs accused of fraud


Attorney General Hector Balderas’s office announced today it has cleared TeamBuilders and Pathways, the final two behavioral health organizations the state of New Mexico accused of ‘credible allegations of fraud’ in 2013.

This makes 15 for 15 organizations cleared of wrongdoing. Earlier this year, Balderas’ agency cleared 10 organizations, adding to the three organizations previously exonerated.

Nearly three years after the state made its accusations, the system by which the state provides services to those struggling with mental illness and fighting addiction, among others, is in disarray. Several of the organizations the state accused of fraud have shuttered their doors, unable to operate after the state shut off the flow of Medicaid to pay for services because of the fraud allegations.

Meanwhile, three of the five Arizona companies brought in by Gov. Susana Martinez’s administration to help provide services to tens of thousands of New Mexicans affected by its actions have left or are leaving the state.

And the number of lawsuits against the state and others is growing.

This is a developing story we will update. We’ve asked for comment from the governor’s office given today’s news.