As a health care fraud law firm, we work with private whistleblowers nationwide to protect taxpayer money and ensure the health of millions of Americans. Often, scammers who defraud the federal system also target state health care programs. We work to fight this type of fraud too, recognizing that these systems are also vital to the health and well-being of countless individuals. While we can handle health care fraud matters across the country, we have particularly strong ties to California and Florida. In today’s post, we look at a problem plaguing California – Medi-Cal fraud involving drug treatment clinics.
Director Apologizes for Medi-Cal Fraud
Last September, The Center for Investigative Reporting (“CIR”) reported on legislative hearings in which Toby Douglas, the director of Medi-Cal, apologized for systemic problems involving the failure to effectively monitor taxpayer-funded drug rehabilitation programs. In the course of those hearings, it became clear that the agency knew about widespread sham billing by “rogue clinics” as early as 2007. In 2014, the agency temporarily suspended 73 clinics and 101 other counseling sites, locations that had bilked Medi-Cal out of more than $36 million in the previous fiscal year alone. At the time of the report, there were at least 64 on-going fraud investigations looking into these scams.