Contact: Isaac Padilla
505/986.4263
Isaac.Padilla@nmlegis.gov
FOR IMMEDIATE RELEASE
Senate Democrats Blast Gov. Martinez Administration Upon Announcement That 10 Behavioral Health Providers Committed No Fraud
(Santa Fe, NM) – Senate Democrats today spoke out strongly in response to Attorney General Hector Balderas’s finding that there was no pattern of fraud by ten behavioral health providers that were accused of it by Gov. Susana Martinez’s administration. Most of those New Mexico providers subsequently were forced to close their doors, bankrupted and were replaced by Arizona firms at a high cost to the State. Some of them, such as La Frontera in Las Cruces, also subsequently have stopped providing services, leaving communities scrambling to cobble together coverage for residents.
“Terminating payments to local Medicaid behavioral health providers did not need to happen,” said Senate President Pro Tem, Senator Mary Kay Papen of Las Cruces. “Cutting funding hurt many of our most vulnerable residents, and that was wrong. I don’t think any one of these providers intentionally made a plan to defraud the government in any way, shape or form. I want to know, now what? We need to be looking at that,” said Senate President Pro Tem, Senator Mary Kay Papen of Las Cruces.
“There should be an investigation of Gov. Susana Martinez’s administration for why they cut funding to organizations that provided vital care for our most vulnerable citizens,” said Senator Howie Morales of Silver City. “Not only were patients hurt, but hard working people lost their jobs and reputations, and small businesses were shut down when these providers were forced to shutter their operations without any due process.”
Two of the Arizona firms that replaced the New Mexico providers pulled out of New Mexico, even after receiving millions more than the providers they replaced. Executives for the Arizona providers billed New Mexico up to $300 an hour for time waiting for flights.
“The Administration made the decision to completely disrupt our behavioral health system, and the consequences have been felt by many vulnerable people all over the state. The people who have been getting assistance previously have not been getting it, especially in the southern part of the state. This entire episode must be laid at the feet of the Governor. We are getting no leadership from the fourth floor on this. We had a good behavioral health system before, but we don’t now. I thank the Attorney General for his action today,” said Senator Gerald Ortiz y Pino.
In 2013, Medicaid funding for 15 mental health providers was terminated after they were accused of fraud. All but two of them have now been cleared of wrongdoing by the New Mexico Attorney General. Five Arizona firms were brought in afterwards to provide services at a cost of more than $17 million. The New Mexico providers were falsely accused by Gov. Susana Martinez’s administration of defrauding Medicaid of $36 million.
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