Posted at: 08/06/2013 7:40 AM
Updated at: 08/06/2013 7:46 AM
By: Elizabeth Reed, KOB.com
Funding for a group of mental health providers cut amid a Medicaid fraud investigation won't be restored any time soon.
Eight of the 15 providers lost an appeal in the 10th U.S. Circuit Court of Appeals in Denver on Monday.
An out-of-state consulting group released an audit in June that accuses the mental health providers of overbilling the federal and state government by tens of millions of dollars.
The Human Services Department suspended Medicaid funding to the groups while conducting an investigation into the audit’s claims.
The group filed their lawsuit in early July, claiming the funding cuts created bad publicity that caused them “irreparable harm.”
Citizens concerned about the cuts have launched a petition on WhiteHouse.gov asking the Obama administration to look into the mental health audit and actions by the Human Services Department.
Their goal is to get 100,000 signatures by September. So far, they have fewer than 100.
(The Associated Press contributed to this report)