NM providers await decisions after funding cut

Posted at: 07/14/2013 10:50 AM
By: Mike Anderson, KOB Eyewitness News 4

 SANTA FE, N.M. (AP) - It will be next week before state officials make any more decisions on restoring funding to more than a dozen New Mexico providers of mental health and substance abuse services.

A state audit last month said 15 New Mexico nonprofit providers failed to meet standards, overbilled the federal and state governments by tens of millions of dollars and may have taken part in fraudulent activities.

As a result, Human Services Secretary Sidonie Squier halted Medicaid and other funding to the providers.

As of Friday, the agency said the flow of money for behavioral health services had resumed for only one of the providers and solutions for the others were being reviewed.

The nonprofits say their futures are up in the air.

At least one has laid off staff and others say they may have to close.

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