The Idaho Department of Health and Welfare has suspended all Medicaid payments to Chubbuck-based Seasons of Hope. The facility provided mental health, developmental disability, and rehabilitation services as well as psychological testing.
According to a letter dated March 28, the department said it determined there are credible allegations of fraud. It reviewed mental health clinic, psychosocial rehabilitative and developmental disability services billed by Seasons of Hope between June 1, 2010 and Jan. 31, 2013.
As a result, the department determined the company had been overpaid by $439,569. A monetary penalty was also assessed in the amount of $109,941, leaving Seasons of Hope owing a half-million dollars.
In a phone interview with the department's representative, Tom Shanahan, he said some claims even included billing clients who had been out of the country at the time or who never needed, nor received, the services.
"Medicaid is funded by taxpayer dollars and so we do want to make sure we're paying for claims and services that are delivered and appropriately delivered," Shanahan said. "We found many instances here where the services either weren't delivered or appropriately delivered."
Shanahan also said Seasons of Hope has 28 days to file an appeal before it goes through a hearing.
The action terminates Seasons of Hope's provider agreements for a period of five years. You can read the official letter at http://goo.gl/M5e0k.
We'll have more details on this story tonight at 5 and 6 on Local News 8 and at 5:30 on KIDK Eyewitness News.