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Florida Medicare investigators found that 40 percent of all mental health outpatient service billings in 1994 were fraudulent.

And if fines collected by the federal government are an index, psychiatry is responsible for nearly 90 percent of the health care fraud in the United States. Of the $411 million paid in health-care-related fines in 1994, $379 million were paid by psychiatric hospitals.

Much of psychiatry’s cost to the taxpayer is hidden. The state budget of Colorado for 1995 allocated approximately $111 million dollars for mental health. However, when the costs of psychiatric programs tucked away inside the Education, Justice and other state departments were examined, that figure nearly tripled.

Much of the money for such programs is simply wasted. In 1990, for example, the U.S. House of Representatives’ Human Resources Subcommittee reported that up to $100 million in federal mental health funds had been illegally diverted. The subcommittee also indicated that while the National Institute of Mental Health (NIMH) knew about it, it was lax in doing anything.


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

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