Copyright © 2013 Albuquerque Journal
State officials say the ongoing takeover of Medicaid-funded behavioral health providers by Arizona companies is going smoothly, while critics point to plenty of bumps.
Seven weeks ago, the state Human Services Department announced that an audit of 15 New Mexico providers that treat mental illness and substance abuse showed overbilling, mismanagement and possible fraud. It abruptly froze Medicaid funding to all of them and said five Arizona companies were prepared to step in, help out, or potentially take them over.
Since then, HSD has restored Medicaid behavioral health funding only to a small nonprofit in Raton. The other nonprofits have continued to operate, either from their reserves or with non-Medicaid temporary funding from the state.