Regional
2:33 pm
Tue August 13, 2013

NM Officials: Health Services Arizona Takeover Proceeding

New Mexico officials say the ongoing takeover of Medicaid-funded behavioral health providers by Arizona companies is proceeding as planned.

But the Albuquerque Journal reports that critics say the whole ordeal has been plagued by bumps.

The New Mexico Human Services Department in June froze payments to 15 nonprofits that provide mental health and substance abuse services after an audit found what the agency said was a high rate of billing problems and possible mismanagement. Officials said five Arizona companies were prepared to step in, help out, or potentially take them over to provide services to patients.

Now at least five of the 15 nonprofits are currently being transitioned to management by Arizona companies.

Nancy Jo Archer, CEO of Albuquerque-based Hogares, one of those nonprofits, called it a "hostile takeover."

Information from: Albuquerque Journal.

Copyright 2013 The Associated Press.