NM health providers lose appeal

Behavioral health providers under investigation for possible overbilling, mismanagement and fraud have lost an appeal of a court ruling that allows New Mexico to continue to withhold Medicaid payments.

 The 10th U.S. Circuit Court of Appeals in Denver on Monday dismissed the appeal by eight nonprofit providers. A federal judge in Albuquerque last month denied the providers' request for an order stopping the state from freezing payments for mental health and substance abuse services.

 A lawyer for the providers said the lawsuit against the state remains pending in district court. 

A legislative committee last week sent a letter to the U.S. Health and Human Services Department seeking assurances that New Mexico won't lose Medicaid funding.

NM health providers lose appeal