These psychiatric hospitals also collected $17.5 million in the five-year period preceding 1987. All in all, psychiatric billings for alcohol and drug abuse treatment alone were at least $200 million. Documentation from the Ministry of Health suggests that total fraud perpetrated against Ontario was in the range of $400 million.
Despite widespread media coverage in the United States, this situation was only lightly touched upon in this country, having come to light through an expose done by the CBC. This involved an Ontario man who was circulated amongst a number of psychiatric hospitals in Texas, all of which billed OHIP for his “treatment.” He left Ontario a cocaine addict and returned one. On April 18, 1991, MPP Ernie Eves, currently the Deputy Premier of Ontario, addressed then Minister of Health Evelyn Gigantes: “The minister will be aware, of course, of the CBC interview last night with a particular patient who billed OHIP for drug treatment in the United States at six different institutions over a period of two years at the amount of $500,000. This money included such items as pills, group therapy and laundry.... He also says that he received $11,000 payable to him. When he did not fill out the appropriate OHIP claim forms, they sent him a cheque directly for $11,000.”
Mr. Eves then requested a report that was prepared by then – health minister Frances Lankin. The document was issued by the Ministry of Health on August 12, 1991, and revealed that over an 18-month period, U.S. psychiatric hospital substance abuse billings were $67,227,711—more than $3.7 million per month or almost a million dollars per week.
Although Canadians were treated from other provinces, Ontario became a prime target because OHIP offered the largest reimbursement rate, paying 75% of any bill up to $1,500 per day. In cases of emergencies, OHIP paid 100%.
The $400 Million Swindle continued...
    
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