Community Mental Health Fraud

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Medicaid fraud, from the Office of Inspector General (OIG), U.S. Department of Health & Human Services

Providing mental health services in outpatient clinics saves the government and taxpayers a tremendous amount of money. It also allows the patient to return home at night. However, some outpatient mental health centers are scamming the system.

How the Scam Works

  • In the typical scenario, patients are brought into the system to receive “treatment.” They arrive at the clinic each day, but instead of receiving treatment they play games or watch TV all day. Then the clinic bills the Medicaid program for “therapy” that was never provided.

How to Fight Back

  • If you have a family member receiving this kind of outpatient mental health treatment, make sure that he is actually receiving counseling. Ask your family member what he did today, and make sure he is actually receiving some kind of therapy.

Report Suspected Fraud

To report suspected fraud, click here.