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Rehab Fraud Investigation Spurs Lawmakers into Action

Rehab Fraud Investigation Spurs Lawmakers into Action
Posted August 2nd, 2013 @ 3:55pm by KFBK News

CALIFORNIA -- An investigation is under way statewide that is reviewing taxpayer-funded drug and alcohol rehabilitation centers concerning fraud.

That investigation by the California Department of Health Care Services became necessary after a CNN investigation uncovered clinics under that umbrella billing the state for patients who didn't show up for or don't have substance abuse problems.

"We have issued 38 temporary suspension letters to clinics around the state," Norman Williams with Health Care Services said.

Williams says they want to keep the public informed on the investigation. However, they are not revealing the location of the clinics. We want to protect the integrity of the investigation, he said.

That CNN investigation revealed 94-million dollars was sent to 56 clinics where there was improper billing.

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