California State Auditor Report 2013-119: California Department Of Health Care Services — Its Failure To Properly Administer The Drug Medi-Cal Treatment Program Created Opportunities For Fraud

In August 2014, the California State Auditor released an audit report of the California Department of Health Care Services’ (DHCS) administration of the Drug Medi-Cal Treatment Program (program). The program provides substance abuse services to Medi-Cal beneficiaries when physicians determine they are medically necessary. To provide these services, DHCS must coordinate with the counties and certify substance abuse clinics, which we refer to as providers. The program provides five types of services, including outpatient drug-free treatment services (outpatient drug-free services), which are the focus of this report. Before July 2012 DHCS negotiated an interagency agreement with . . .