Pyschiatric firm awarded NM contracts despite fraud inquiry

Posted at: 01/14/2013 12:41 PM
By: The Associated Press

ALBUQUERQUE, N.M. (AP) - New Mexico health officials awarded contracts to a Roswell-based firm which was at the time was the subject of another agency's investigation into alleged Medicaid fraud.

The Albuquerque Journal  reports the Department of Health Services awarded contracts to New Mexico Psychiatric Services last summer to provide on-call or temporary services at state-run services.

The newspaper reports that at the time the state Attorney General's office was investigating the company in connection with work for the Department of Human Services.

A spokesman for the health department says the agency knew about the investigation and didn't consider the investigation what the spokesman called a "determinative" factor.

The Medicaid investigation continues. A lawyer for the company's president says it is cooperating with the investigation and that any overpayments will be repaid.

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