N.M. Investigating Health Nonprofits’ Ties to $1-Billion Firm

New Mexico officials are examining the links between groups that receive tens of millions of dollars a year from Medicaid to deliver behavioral-health services and a publicly traded Arizona company that until recently had ranking executives of the nonprofits on its payroll, reports the Albuquerque Journal.

Top managers at six behavioral-health groups also worked for Providence Service Corp., a Tucson firm with annual revenue of $1-billion, until they were forced out earlier this summer by New Mexico’s Human Services Department. Tax filings show the nonprofits paid $200,000 to $900,000 a year to Providence-affiliated entities for administrative services, including Medicaid billing.

Sidonie Squier, the state’s secretary of human services, said the situation “is riddled with financial conflicts of interest, and it calls into question whether Medicaid dollars are being spent appropriately.” Her agency has suspended payments to 15 health groups as it investigates possible fraud and abuse.