On July 22nd, 2013

DHCS Investigators At Work: Suspected Fraud At Drug Treatment Centers

When the California Department of Health Care Services (DHCS) received complaints about abuse and fraud in the Drug Medi-Cal (DMC) program, our California Statewide Law Enforcement Association (CSLEA) members in DHCS's Audits & Investigations Division went to work.    Their investigations uncovered suspected fraud and as a result, the state suspended Medi-Cal payments to 16 alcohol and drug treatment centers.

Investigators checked out  22 treatment centers and found suspected violations at 16 of them.   The allegations include hiring felons and/or people convicted of abusing patients to billing Medi-Cal for services that were not needed or that were never performed.

"Unfortunately, there is no shortage of fraud where people stand to make a buck," said CSLEA President Alan Barcelona.  "DHCS investigators devote their skills to, not only exposing the fraud and abuse, but to also building a case against those individuals breaking the law.  They do a great job of protecting taxpayers' money and making sure the program is doing what it was designed to do."

The investigation is on-going.  The case has been referred to the state Department of Justice (DOJ) for further investigation. 

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