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“Business as Usual”

After Charter Medical Corporation settled with the Texas Attorney General’s Office following the industry-wide fraud scandal in 1993, it said it would use the settlement as an opportunity to “reassert our leadership in industry reform and our commitment to higher standards for patient care and treatment.” But it led the industry in the wrong direction. In December 1995, Charter paid the Texas Attorney General’s Office another $1.5 million for violating the settlement agreement.

“It’s business as usual. Hasn’t changed one bit,” Dr. Walter Afield, M.D., president of Mental Health Programs Corporation, a company that monitors mental health claims for more than 36 leading insurance companies, said. “If you’ve got lots of good insurance, you’re going to wind up in the hospital.”

Psychiatrists seem to go out of their way to prove Afield is right. On February 12, 1996, the Orlando Sentinel reported that unsuspecting overweight people were being lured by advertisements for luxurious fat farms into psychiatric hospitals which then billed Medicaid for insurance to “treat” their “mental illness.” Florida Medicare fraud complaints soared from 10,000 in 1992 to 25,000 in 1994.



Psychiatry’s $40,000,000,000 Fraud continued...

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