New Hampshire Official Says Mental Health System Inefficient, Misused Medicaid Funds

New Hampshire's 10 community mental health centers are "monopolies," and the system has misused Medicaid funding, Thomas Keane, the outgoing director of the state Division of Behavioral Health, told the joint Legislative Finance Committee on July 30, the Manchester Union Leader reports. In a June 28 letter that was written upon his resignation, Keane charged that the centers billed Medicaid for services not rendered; had "inappropriate access" to state computer programs; billed inappropriate amounts for various services; back-dated Medicaid eligibility, which resulted in additional Medicaid service billings; and exceeded estimated annual cost estimates. He also said that unlike other states, in New Hampshire there is no public bidding for providing services in order to reduce costs. Rather, the state Department of Health and Human Services awards the mental health centers five-year, renewable contracts without seeking bid requests from other providers, which Keane said could offer lower costs. Keane's allegations are being investigated by the state attorney general's office and the HHS inspector general. Outgoing health and human services department Commissioner Donald Shumway and other state employees said the allegations are "unfounded," that Keane never voiced concern about the problems and that the "system is working," the Union Leader reports. The committee Chair Neal Kurk (R) said the panel will continue to examine Keane's allegations and will "take appropriate action," if necessary (Tracy, Manchester Union Leader, 7/31).