New Mexico behavioral health care system gets federal review

The federal Health and Human Services Department will inspect if New Mexico is properly serving New Mexicans in need of mental illness and addiction services. The review by the Inspector General of the federal Health and Human Services Department, confirmed in late June and made public Friday afternoon, comes roughly four years after Gov. Susana Martinez’s administration disrupted care for tens of thousands of New Mexicans when her Human Services Department accused 15 organizations of Medicaid fraud and potentially overbilling the government by nearly $36 million. Citing the fraud accusations, the Human Services Department suspended the flow of ‘behavioral health’ Medicaid dollars to many of the organizations in the summer of 2013. Unable to stay in business without the Medicaid dollars, many had to shut their doors and are no longer in business. Ultimately no Medicaid fraud was ever found.

NM settles $2.8M Medicaid overpayment claim for $485

As Gilda Radner’s Emily Litella might have said, “Nevermind!”

More than four years after accusing Southwest Counseling Center of overbilling the state by $2.8 million in Medicaid reimbursements, the Human Services Department has settled with the former Las Cruces behavioral health provider for $484.87. SWCC was one of 15 health organizations accused of overbilling and potential fraud by Gov. Susana Martinez’s administration in 2013.  The state suspended Medicaid payments to the organizations pending an investigation, and outsourced behavioral health contracts to five Arizona companies, which effectively crippled the network of New Mexico behavioral health providers.  All the while, the state kept an audit they used to justify the move secret, making it impossible for each organization to know what they were being accused of specifically. See a timeline and read of coverage of the Medicaid freeze here.