Southwest Counseling Center Sues New Mexico Over 18-Month ‘Temporary’ Medicaid Payhold Without Hearing

On October 24, 2014, Southwest Counseling Center (SWCC) sued the New Mexico Human Services Department (HSD) and the Office of the Attorney General (AG) for imposing a “temporary” Medicaid payhold on $1.25 million in reimbursements for services. The payhold was rendered without a hearing or allowing SWCC to view documents supporting what HSD said in June 2013 was a credible allegation of potential Medicaid fraud. The state instituted the payhold during the AG’s investigation of the HSD allegation. SWCC seeks to force the state to grant a hearing regarding the allegations, and also asked the court to fine . . .