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Health Care Scams

Waste, fraud and abuse in the U.S. health care system
Criminal Justice

California lawmakers order audit of taxpayer-funded drug rehab program

Sen. Ted Lieu, a Los Angeles County Democrat, called for the Drug Medi-Cal audit along with Democratic Assemblyman Adam Gray, chairman of the Joint Legislative Audit Committee.Randy Allen/The Center for Investigative Reporting SACRAMENTO, Calif. – California lawmakers ordered an audit today to examine the extent of fraud in the state’s taxpayer-funded drug rehabilitation program and

Criminal Justice

Rehab fraud investigation prompts Assembly hearing, call for audit

Richard Pan (center), chairman of the Assembly Health Committee, said he will examine disclosures of fraud in taxpayer-funded drug rehabilitation a hearing in September.Rich Pedroncelli/Associated Press UPDATE, Aug. 2, 2013: This story updates with additional clinic suspensions. A California lawmaker has scheduled a hearing to examine disclosures of significant fraud in taxpayer-funded drug rehabilitation by

Criminal Justice

Clinic leaders tied to fraud in LA reap taxpayer funds in Riverside County

The state Department of Health Care Services has primary responsibility for safeguarding the Medi-Cal program against fraud. It took over Drug Medi-Cal in 2012.CNN A drug rehab clinic in Los Angeles was shut down after a criminal investigation found Medi-Cal fraud. Another, in Riverside County, continued to flourish, reaping increasing amounts of taxpayer money. The

Jul 29, 2013
Criminal Justice

Lax oversight leaves California drug rehab funds vulnerable to fraud

Alexander Ferdman was convicted in 2000 of engaging in organized crime in Texas. Despite a state law barring felons from running Medi-Cal clinics, California officials approved his drug rehab clinic in 2003.CNN Highlights Weak, uncoordinated oversight by state and county officials has allowed fraud to flourish in California’s drug and alcohol rehabilitation program. State officials

Jul 29, 2013
Criminal Justice

California rehab clinics bill taxpayers for fake clients, addictions

Victoria Byers said that as a teenager, her group home took her to So Cal Health Services in Riverside, Calif., for rehab even though she didn’t drink or do drugs. CNN Highlights Fraud is rampant in California’s drug rehabilitation program for the poor, with clinics cheating taxpayers by billing for counseling that never happened. Clinic

Jul 29, 2013
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