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mental health Massive Fraud
Psychiatry's Corrupt Industry

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IMPORTANT FACTS

1. Mentally troubled persons and those living in residential psychiatric facilities are easy targets for exploitation: fraud, assault and sexual and/or financial abuse.

2. Psychiatrists, psychologists, psychotherapists and their hospitals must be made fully accountable for their funding, practices and treatments �and their results.

3. Any psychiatrist or psychologist facing professional board investigation for sexual abuse of a client should always be suspected of fraudulent billing practices.

It will always be left to agencies external to the mental health system to police it. Psychiatrists and psychologists will not change direction, any more than they did after a decade of exposure of massive fraud in private for-profit hospitals in the 1990s.

CHAPTER FIVE What Should Be Done?

A Medicare Fraud and Abuse Training Manual advises examining mental health services for fraud and abuse. The reasons given include: patients trust their therapist/counselor; mentally ill persons are easy targets for exploitation; and residents living in residential psychiatric facilities are at risk for exploitation by health care providers.

According to the Arkansas Attorney General, �Physical abuse or neglect is any action or failure to act that causes unreasonable suffering, misery, injury or harm to a resident � from striking or sexually assaulting a patient to withholding necessary and adequate food, physical care or medical attention.

�Financial abuse includes the misuse of a resident�s trust funds to pay for nursing home services already being paid for by the Medicaid [insurance] program or for uses of a patient�s funds not authorized by either the resident or resident�s guardian, trustee, administrator, etc.�

Other things to watch for include misrepresenting the length of a �therapy session� (billing for a one-hour rate when the patient only received 20 minutes); billing for individual consultation or therapy when the patient was part of �group therapy�; billing for patients that cannot possibly benefit from �therapy� (such as comatose patients); and billing for outside contractors (therapists) not covered by the facility's insurance. Drug prescription records should also be monitored. Any
psychiatrist or psychologist facing professional board investigation for sexual abuse of a client should always be suspected of fraudulent billing practices.

It will always be left to agencies external to the mental health system to police it. Psychiatrists and psychologists will not change direction, any more than they did after a decade of exposure of massive fraud in private for-profit hospitals in the 1990s. Author Joe Sharkey states, �... As anyone who watches television and reads the papers is aware, psychiatric hospitals, psychiatric wings of general hospitals, and addiction treatment centers are still eagerly trolling for customers who have insurance.�

According to the California Department of Mental Health Medical Evaluation Field Manual(1991)� which CCHR assisted in introducing��Mental health professionals � have a professional and a legal obligation to recognize the presence of physical disease in their patients � Physical diseases may cause a patient�s mental disorder [or] may worsen a mental disorder.�

In fact, up to 40% of psychiatric facility admissions would be unnecessary if patients were first properly medically examined. This represents enormous potential savings in terms of dollars and suffering.

Ultimately, psychiatrists, psychologists, psychotherapists and their hospitals must be made fully accountable for their funding, practices and treatments, and their results, or lack thereof. This includes criminal acts that should be dealt with only through the courts, not medical tribunals.

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