Mental Health Providers Paying NM For Overbilling

Nov 4, 2013

State officials say two of the behavioral health providers under investigation for possible fraud have agreed to pay New Mexico more than $4 million for the overbilling of services.

The Human Services Department announced Monday it is recovering $4 million from Presbyterian Medical Services and $240,000 from Youth Development Inc. in Albuquerque.

The settlements will clear the way for the state to restore Medicaid payments to the companies for mental health and substance abuse services they provide to needy New Mexicans.

The companies were among 14 nonprofit organizations that in late June were suspended from receiving Medicaid reimbursement because of allegations of fraud, mismanagement and billing problems.

The attorney general's office continues to investigate the allegations, including against the companies resolving the overbilling claims.

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