Rehab racket: Frauds, felons and fakes
By Christina Jewett and Will Evans, Special to CNN
...
In a rehab racket plagued
by regulatory holes, paperwork trumps reality, a yearlong investigation
by The Center for Investigative Reporting and CNN has found.
Thousands of pages of
government records and dozens of interviews with counselors, patients
and regulators reveal a widespread scheme to bilk the state's Medicaid
system, the nation's largest. The populous Los Angeles region is one of
the nation's top hot spots for health care fraud, and former state
officials agree it is also ground zero for the rehab racket.
Drug Medi-Cal paid out
$94 million in the past two fiscal years to 56 clinics in Southern
California that have shown signs of deception or questionable billing
practices, representing half of all public funding to the program, CIR
and CNN found. Over the past six years, more than half a billion dollars
have poured into the program statewide. ...
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