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Healthcare Business News
 

N.M. cracks down on non-profit leaders' conflicts of interest


By Associated Press
Posted: September 8, 2013 - 5:30 pm ET
Tags:

The head of New Mexico's Human Services Department says the relationships between six nonprofit behavioral health service providers and a for-profit Arizona company appear fraught with conflicts of interest.

The Albuquerque Journal reports that the top executives of the nonprofits were on the payroll of Tucson-based Providence Service Corp. until they were forced out earlier this summer by the Human Services Department.

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The six New Mexico nonprofits along with nine others had their state Medicaid payments suspended after an audit allegedly turned up evidence of fraud and abuse.

A review of tax records showed the nonprofits paid amounts ranging from $200,000 to $900,000 a year to a Providence subsidiary and another nonprofit firm controlled by Providence for providing administrative support services that included Medicaid billing to the state.


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