- Associated Press - Wednesday, August 20, 2014

SACRAMENTO, Calif. — State auditors have found Medi-Cal was hit with $93 million in potentially fraudulent bills by substance abuse clinics across California.

The Los Angeles Times reports the audit released Tuesday reviewed five years of billing data for Medi-Cal’s Drug Treatment program, which reimburses outpatient rehabilitation clinics.

The report says the state’s Department of Health Care Services and the Department of Alcohol and Drug Programs failed to administer the program “and created opportunities for fraud.”

DHCS spokesman Norman Williams tells the Sacramento Bee a review led the department to cut ties with more than 200 clinics and refer their operators for criminal prosecution.

The department plans to visit every clinic in the state as part of a sweeping recertification review.

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