09/24/2026
They billed the state for treating people who were sitting in jail.
Everything we've posted this month happened years ago. This happened on September 2nd.
That's the day AHCCCS, Arizona's Medicaid agency, cut off payments to two Phoenix behavioral health clinics under the same owner and referred both to the Attorney General. FOX 10 got the suspension notices last week. Here is what the state says it found, in the state's own words.
Billing for members who were incarcerated at the time of the "treatment."
"Impossible hours." More treatment billed in a day than there are hours in a day.
The same clients billed at both clinics, at the same time.
Claims that overlapped with treatment those same people were supposedly getting at other outpatient facilities.
Non-Native members switched onto the American Indian Health Plan without authorization, the plan that pays more and asks fewer questions.
And patient brokering: paying for people.
Between the two clinics, about $3.97 million billed since 2022.
Nobody has been charged. These are the reasons the state gave for stopping the checks, and the owner has the right to respond. But read that list again. Jail records are public. Hours in a day are not a mystery. Two clinics billing one person at the same moment is a computer check.
Three years after the state said it fixed this, a clinic was billing for people in jail, and it took until this month to turn off the money.
The reforms are catching people. They are catching them late, after the money is gone, and after the people in the homes are too.
The image below is a recreation to illustrate the story, not a photo of any real jail or person. Article linked in the comments.