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Posted at 12:50 PM ET, 11/21/2008

City May Owe Feds Millions for Bad Medicaid Claims

Mayor Adrian M. Fenty announced today that the District may owe millions of dollars to the federal government because of improper documentation to support Medicaid claims filed on behalf of the city's neediest residents.

Julie Hudman, director of the city's newly formed Department of Healthcare Finance, said that according to audits dating to 2004 the school system and the Child and Family Services Agency failed to provide the proper paperwork to support many of its claims.

"In some cases we don't have any documentation that show that work was ever done," said Hudman, adding that the city offers a range of services to children who have special needs or are in special education programs provided by private contractors who are paid by the federal government.

Hudman said that in some cases documentation was submitted for work that was never done, in others no documentation was submitted for completed work, and still in others the documentation submitted was not properly completed.

Fenty held a joint news conference with David Cantania -- chairman of the council committee on health -- in an effort to show the city is taking a proactive effort to manange services for children with special needs.

Hudman said they plan to work out a negotiated settlement with the federal government to pay back the money, but are trying to determine how much money they owe.

Hamil R. Harris

By Marcia Davis  |  12:50 PM ET, 11/21/2008

Categories:  Mayor Fenty

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