SANTA FE – The state Human Services Department on Monday refused requests from 11 nonprofits to reinstate Medicaid behavioral health funding that was cut off three weeks ago after an audit the department said showed overpayments, mismanagement and possible fraud.
The department was still reviewing requests from three others, spokesman Matt Kennicott said. A 15th provider, Service Organization for Youth in Raton, has had its Medicaid money for behavioral health restored.
Some providers say they’ll have to close, disrupting services to the mentally ill and addicted. HSD says they’re contractually barred from doing that, and should instead agree to new management put in place by HSD.
Meanwhile, a federal court hearing is scheduled for Wednesday as the providers seek to have the funding freeze overturned.
HSD refused requests from: Albuquerque providers Hogares, Partners in Wellness, and Pathways; TeamBuilders, Santa Fe; Counseling Associates, Roswell; The Counseling Center, Alamogordo; Valencia Counseling Service; Las Cruces-area providers Southwest Counseling Center, Families & Youth, and Southern New Mexico Human Development; and Border Area Mental Health Services, Silver City.
Pending were requests from Santa Fe-based Presbyterian Medical Services and Easter Seals El Mirador, and Youth Development Inc. in Albuquerque.