SANTA FE, N.M. — A Santa Fe-based behavioral health company says it felt forced by Gov. Susana Martinez’s administration to agree to pay a $4 million settlement to the state to resolve Medicaid fraud allegations in order to stay in business.
The Santa Fe New Mexican (http://bit.ly/1oUelrZ ) reports that Presbyterian Medical Service executives told legislators during a hearing in Albuquerque Wednesday that their company was innocent but settled to avoid being shut down.
A state Human Services Department said Presbyterian didn’t have to agree to the settlement to repay the alleged overbilling.
Department spokesman Matt Kennicott said Presbyterian was informed of its options and made the decision to settle.
While Presbyterian and another company settled, numerous other behavioral health providers accused of Medicaid overbilling were replaced by other companies during a shake-up last year.