State finds no fraud by mental health provider

Posted at: 01/17/2014 8:48 AM
Updated at: 01/17/2014 9:13 AM
By: The Associated Press

Photo: Courtesy: Alamogordo Daily News

SANTA FE, N.M. (AP) - Attorney General Gary King says investigators found no fraud by a behavioral health provider in Alamogordo although Medicaid was improperly billed for $19,000 in services.

King's office announced yesterday it had finished an investigation of the first of more than a dozen nonprofit mental health providers that had their Medicaid payments suspended last year by the Human Services Department because of allegations of fraud, mismanagement and billing problems.

A department spokesman says the agency will investigate the overbillings by The Counseling Center in Alamogordo and suspects the amount is much higher.

The state contracted with an Arizona company to take over providing services that had been handled by the nonprofit group.

Counseling Center CEO Jim Kerlin said the group is out of business and he disputed there were overbillings.

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