The investigation showed that the center searched for troubled, low-income children to enroll in its program, but never diagnosed them or treated them in an effort to defraud Medicaid. A whistleblower lawsuit was brought against Madison Center in 2005 by two former employees, Jean Marie Thompson, who worked as a children and adolescent intake coordinator, and Kathleen McCoy, a therapist who also worked in the admissions office.
The lawsuit alleges that Madison Center found “problem children” from local schools to enroll in its day program, and once the students were enrolled, employees convinced parents that the children’s siblings should also attend the program. The children were not properly diagnosed, however, and received little or no treatment.
The state of Indiana estimates that it paid the center over $10 million in Medicaid reimbursements over a 10-year period based on the fraudulent billing.
Read the Phillips and Cohen news release on Madison Center.
Read more Becker’s coverage on healthcare fraud in Indiana.
Indiana Anesthesiologist Charged With Healthcare Fraud, Unlawful Drug Distribution
Indiana Physician Indicted on Medicare Fraud Charges
Indiana Names Deputy Director for Medicaid Fraud Unit
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