North Carolina Medicaid Alleges Fraud on Part of Mental Health Provider

North Carolina has suspended Medicaid payments to health care provider in Boone, North Carolina with thousands of clients following allegations of fraud. New River Behavioral Healthcare (“New River”) has not received Medicaid payments since October 4, 2011 after a letter from the state Division of Medical Assistance alleged that at least four examples of fraud have taken place at the provider. New River serves nearly 13,000 clients in eight western North Carolina counties. New River has lost at least $3 million and is currently going through an independent audit to find signs of embezzlement or misuse of funds.