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State recommends changes after DWMHA board accused of wasting millions of Medicaid dollars

Dec 20, 2017

Credit Wikimedia Commons

The state Office of the Inspector General is recommending new language be included in the next contract between the state and its 46 mental health authorities and community mental health agencies.

That's after a botched CEO search brought attention to the Detroit Wayne Mental Health Authority board's pattern of not recouping millions of dollars in over billing and waste from its subcontractors.

You can read more about the board's pattern of overspending here

The new language could make it more difficult for mental health authorities to allow subcontractors to waste Medicaid dollars. From the recommendations:

If the PIHIP (meaning the mental health authority) identifies an overpayment involving waste or abuse prior to identification by MDHHS-OIG, the PIHI)P shall (emphasis added) recover the overpayment and report the overpayment on its quarterly program integrity submission.

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