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Posted inHealth CareHealth Care Scams

Governor’s budget proposes funding to improve Drug Medi-Cal oversight

Gov. Jerry Brown, seen in 2013.Beck Diefenbach/Associated Press Gov. Jerry Brown wants to add some firepower to the crackdown on fraud in California’s drug and alcohol rehabilitation program for the poor. The governor’s budget proposal for the next fiscal year, officially announced today, includes $2.2 million for 21 new positions to help health officials with […]

Posted inHealth CareHealth Care Scams

As rehab operators fight to reopen clinics, criminal pasts come to light

Steven Proshak was naked and furious when police arrived at his North Hollywood home. His girlfriend, who had called 911 for help, was slumped on the floor. Proshak yelled expletives at the officers. He told them to get “out of my house” and made obscene threats, court records say. A Los Angeles jury convicted Proshak […]

Posted inHealth CareHealth Care Scams

Rehab clinics cut off for questionable billing still reaped federal funds

The offices of Goretti Health Services were in this building in Lawndale, Calif. The drug rehabilitation clinic’s Drug Medi-Cal contract was canceled in 2008, but it kept itself afloat with a second taxpayer-funded program, receiving 0,000 in federal Access to Recovery grants.Richard Hartog/For The Center for Investigative Reporting Days after a Los Angeles County inspector […]

Posted inCriminal JusticeHealth CareHealth Care Scams

L.A. County audit finds failures in oversight of drug rehab clinics

The Los Angeles County Board of Supervisors commissioned the report looking into taxpayer-funded drug rehab clinics. Supervisor Zev Yaroslavsky offered the resolution calling for the audit.Alex J. Berliner/ABImages via AP Los Angeles County authorities have let problem drug rehabilitation providers run away with millions of dollars in public money and failed to follow through on […]

Posted inHealth Care

Director apologizes after lapses lead to Medi-Cal fraud at rehab clinics

Karen Johnson, chief deputy director of the Department of Health Care Services, and Director Toby Douglas testify at a state Assembly oversight hearing about fraud at rehab clinics.Will Evans/The Center for Investigative Reporting UPDATE, Sept. 26, 2013: This story updates to include new details from the hearing and the extent of suspected Medi-Cal fraud. The director […]

Posted inCriminal JusticeHealth CareHealth Care Scams

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 […]

Posted inCriminal JusticeHealth CareHealth Care Scams

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 […]