Audit: HSD mismanaged Medicaid money

ALBUQUERQUE (KRQE) – A state audit says the Human Services Department mismanaged federal Medicaid money.

It also says the HSD improperly handled fraud allegations against more than a dozen mental health providers, some of which have gone out of business because the agency suspended their Medicaid payments.

The audit says it also improperly paid $620,000 to Arizona companies brought in last year to take over management of the mental health providers because the fraud allegations and billing problems.

An HSD spokesman said the audit is full of inaccuracies. provides commenting to allow for constructive discussion on the stories we cover. In order to comment here, you acknowledge you have read and agreed to our Terms of Service. Users who violate these terms, including use of vulgar language or racial slurs, will be banned. Please be respectful of the opinions of others. If you see an inappropriate comment, please flag it for our moderators to review.

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