Another Arizona mental health provider to depart New Mexico

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LAS CRUCES, N.M. (AP) — Another Arizona-based nonprofit has confirmed it plans to cease providing Medicaid-funded mental health services in southern New Mexico.

Tucson-based La Frontera plans a staggered transition to phase out its operations in Dona Ana and several other counties, casting uncertainty on services for nearly 3,800 clients.

La Frontera had said in February it would provide a 90-day notice to withdraw from New Mexico. CEO Dan Ranieri said recent talks didn't change that course.

Ranieri said it's unclear when the company will wrap up its operations since replacement providers need to be identified for its clients. The goal is to make the process smooth for clients and employees, he said.

"You don't want to interrupt the care for people receiving the care, and you don't want to interrupt the paychecks" of the employees, he said.

The state Human Services Department said it's working with managed care organizations and local providers to help clients find the services they need.

Sen. Mary Kay Papen, D-Las Cruces, said the state's mental health care system has been upended over the past two years. Whatever happens next, she said, clients' well-being should be taken into serious consideration.

"I'm hoping we can get qualified people and we can get qualified services for this very vulnerable population of people," she said. "I think it's unconscionable what has gone on."

The other Arizona-based provider pulling out is Turquoise Health and Wellness. It offered mental health to Medicaid patients in Carlsbad and other locations in southeastern New Mexico.

La Frontera and Turquoise were brought in to replace other Medicaid-funded providers that were terminated under a 2013 shake-up spurred by allegations that $36 million in Medicaid funding was mishandled by 15 nonprofit providers.

Gov. Susana Martinez's administration froze payments to the nonprofits while the attorney general's office launched an investigation. Reviews into three of the providers are complete, and no fraud was found in at least two of the cases.

In two cases, state courts have ruled that the Human Services Department violated due process rights of the removed providers by refusing to accept their explanations about billing irregularities.