New Mexico settles with behavioral health providers

July 9, 2019 GMT

SANTA FE, N.M. (AP) — New Mexico has reached settlements with three providers whose Medicaid claims were frozen as part of a shake-up in the state’s behavioral health care system.

The Human Services Department announced the agreements during a news conference Tuesday. The providers include Hogares, Inc; Valencia Counseling Services, Inc.; and The Counseling Center, Inc.

Under the terms, the parties agree the settlements are a compromise and do not represent an admission of wrongdoing or liability.

In 2013, then-Gov. Susana Martinez’s administration froze payments to 15 nonprofits that provided mental health services after an audit identified $36 million in Medicaid overpayments.


An investigation by the state attorney general found no patterns of fraud, only regulatory violations.

Human Services Secretary David Scrase says his agency will continue working with providers to rebuild the state’s behavioral health network.