Ohio freezes new behavioral health provider applications amid fraud concerns

PORTSMOUTH, Ohio (WCHS) — The Ohio Department of Behavioral Health is cracking down on fraud and abuse within its system, announcing a temporary freeze on new behavioral health and rehabilitation provider applications statewide.

Officials said the move comes as the state works to rein in oversight issues in a rapidly expanding addiction recovery industry.

Across Ohio, there are thousands of addiction recovery facilities. While many are helping people overcome addiction, state leaders said others are falling short.

“We have more waste and abuse,” Rep. Justin Pizzulli, R-Scioto, said. “The recovery system grew so quickly that our oversight never caught up.”

Pizzulli said that is now beginning to change. The Department of Behavioral Health has implemented a temporary freeze on new providers while developing a stricter review process for incoming applications. The goal is to ensure facilities meet consistent standards before being approved.

Part of the concern stems from questionable billing practices uncovered in some facilities.

“We have a facility that was billing Medicaid in Portsmouth for activities such as pickleball, nap times, hanging Christmas lights and even aromatherapy and other recreational services,” Pizzulli said. “Taxpayers are very confused.”

Officials said the lack of consistent standards has allowed wide variation in the quality of care being offered.

“There’s an issue because there’s a lot out there and there are different degrees of effectiveness,” Pizzulli said.

Some in the treatment community support the crackdown. Kevin Dennis, CEO of Field of Hope, an addiction recovery facility in Gallia County, said increased oversight will ultimately strengthen the system and improve outcomes for patients.

“One of the secrets to success is keeping the rehabilitation of the client first and foremost,” Dennis said. “That’s what’s important and I’m not sure everybody does that.”

State leaders said the new approach will focus on accountability and measurable results.

“This is going to begin a more thorough review process for new behavioral health and rehab provider applications,” Pizzulli said.

One of the key goals is to create clear standards to determine whether facilities are effective and using taxpayer money appropriately. The application freeze is expected to last about one year.