Nonprofit pays up after improper billing

A nonprofit provider of mental health services paid nearly $557,000 to settle allegations of improper billing to government health programs, the state attorney general's office said.

Tri-City Mental Health Center began reviewing employee complaints about irregularities in 2003, and the nonprofit's board ordered an outside audit, Attorney General Martha Coakley said today. Tri-City reported the improper billing in late 2004, and was never charged.

State and federal investigators found Tri-City billed the state Medicaid program and the state Department of Mental Health for psychiatric services that were never provided, or couldn't be documented, for more than two years, starting in September 2001.

At least one manager, at the Malden office, was fired, Coakley said.

Ellen Dalton, a manager at Tri-City, said improperly received government payments were used to fund operations, not for any personal use.

The nonprofit runs mental health centers in Malden, Medford, and Everett.
(AP)