Secrecy surrounds fraud allegations in new mexico mental health audit in june new mexicos behavioral health care system was thrown into chaos the state abruptly froze medicaid payments to more than a dozen mental monday october 28 2013. Based on a state audit in june of this year new mexicos behavioral health system was dealt a vicious blow with the audit allegedly finding widespread fraud the state froze all medicaid payments to 15 new mexico mental health agencies leaving them in the hands of a few arizona companies. Each of the 15 providers failed to meet compliance standards and collectively overbilled the medicaid program 36 million between 2009 and 2012 according to hsds summary of the audit which was performed by a boston based contractor public consulting group. Heath haussamen new mexico in depth last year the human services department forced a transition from organizations like southwest counseling center in las cruces shown here providing behavioral health services in new mexico to those services being provided by five arizona companies a new audit finds flaws with the way hsd did that. Background in a population of 18 million approximately 20 percent of new mexicos residents are covered by medicaid to contain public sector health services expenditures governor gary johnsons administration developed a privatized integrated managed care system to deliver physical and mental health services to medicaid recipients
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