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April 2007
 Review of Medicaid Community Mental Health Center Provider Services
in Indiana
The Federal Office of the Inspector General (OIG) conducted an audit
of Indiana Community Mental Health Center (CMHC) service providers
to determine if Medicaid Rehabilitation Option (MRO) Services
provided by the Indiana Department of Family and Social Services in
2003 met staff qualifications and disbursement regulations. OIG
selected a random sample of 200 services from the possible 3.4
million that were billed. OIG reviewed the sampled payments to
determine whether the applicable federal and state claiming
requirements were met.
The OIG reported that of the 200 randomly selected MRO services
provided by CMHCs, 64 included one or more alleged payment errors.
Fifty-eight errors were due to missing or incomplete documentation
for services; five errors were incorrectly paid by FSSAs fiscal
agent. One error was due to ineligible service, and one error was
because a provider lacked proper credentials. As a result, OIG
estimated that the state may have overpaid CMHCs about $33.4
million.
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