Attorney General Recovers $385,000 In Settlement With Jamestown Health Care Provider

Attorney General Spitzer today announced that The Resource Center, a not-for-profit agency serving individuals with disabilities and their families throughout Chautauqua County, has repaid taxpayers $387,794 for Medicaid billing irregularities.

"The taxpayer-funded Medicaid program was designed to assist citizens in need," said Spitzer. "The recovery of this money by my Medicaid Fraud Control Unit (MFCU) will go a long way in ensuring that those needs are properly met."

The Resource Center, located at 880 East Second Street in Jamestown, is part of NYSARC, Inc. (New York State Association for Retarded Citizens), a private not-for-profit statewide association dedicated to meeting the needs of individuals suffering from mental retardation and developmental disabilities and their families. Locally, The Resource Center provides a variety of medical, mental health, and community services to persons in the Chautauqua region. Among the programs it operates are an outpatient medical clinic, a mental health clinic, and a continuing day treatment program.

The settlement announced today is based on an audit conducted by the MFCU. In reviewing the billing records of The Resource Center for January 1996 through April 1999, the audit revealed that the Center received Medicaid reimbursement for services that, although provided, lacked proper written documentation or were billed at a higher reimbursement rate than permitted.

Spitzer thanked the State Health Department for referring the matter to his office.

The investigation resulting in this repayment of Medicaid funds was conducted by Special Assistant Attorney General Michael T. Kelly, Director of the Buffalo Regional Office of the Attorney General's MFCU. All cases are handled under the direct supervision of Deputy Attorney General Jos? Maldonado.