Judge to hear NRSA appeal
By JULE HUBBARD
Staff
Judge Julian Mann III, chief administrative law judge of the N.C. Office of Administrative Hearings in Raleigh, is scheduled to hear a New River Service Authority (NRSA) board appeal concerning Medicaid reimbursements in May.
The NRSA board unanimously agreed to appeal to the N.C. Office of Administrative Hearings after N.C. Department of Health and Human Services (DHHS) hearing officers turned down the board's request for release of about $500,000 in Medicaid reimbursements.
The reimbursements are being withheld due to allegations of Medicaid fraud against New River Behavioral HealthCare. The NRSA is overseeing dissolution of New River and the reimbursements being withheld are for services provided by New River.
Brad Deen, a DHHS spokesman, said this morning that the N.C. Division of Medical Assistance is continuing its investigation into allegations of fraud against New River.
DHHS hearing officers heard the appeal and request for releasing the money to the NRSA board in late October.
County government officials in Wilkes, Ashe, Alleghany, Watauga and Avery counties are awaiting results of the appeal because the $500,000 could be used to finance New River's remaining financial obligations, thus easing the financial burden that possibly could be passed on to them.
Officials of the five counties are also waiting to see if the Medicaid investigation results in the NRSA board being ordered to return Medicaid reimbursements, allocated earlier to New River, to the state. Local officials said this could result in the five county governments having to pay the state millions of dollars.
According to a Sept. 22 letter from Patrick Piggott, section chief in the N.C. Division of Medical Assistance, the division is required to suspend all Medicaid payments to a provider after determining a credible allegation of fraud was made.
NRSA officials have said the allegations involved New River's services in McDowell, Caldwell and Alexander counties, which were ended in mid-2011.
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