More nonprofits sue over Medicaid funding

ALBUQUERQUE (AP) – Three more nonprofits forced out of the behavioral health business when their Medicaid funding was cut off have sued the Human Services Department and the state.

The Albuquerque Journal reports ( ) The Counseling Center, Easter Seals El Mirador, and Border Area Mental Health Services filed lawsuits last week, bringing the total number of lawsuits alleging the state violated providers’ rights to 10.

The nonprofits, which provided services to the mentally ill and addicted, say they hadn’t been told what they did wrong.

The department says an audit of 15 providers identified more than $36 million in overbilling. The attorney general finished investigating three providers and has cleared them of fraud.

The first seven lawsuits are now pending in federal court, which is likely where the three lawsuits will end up. 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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