Attorney General Charity Clark Announces Settlement With Washington County Mental Health Services

Attorney General Charity Clark today announced a settlement agreement with Washington County Mental Health Services (WCMHS). The settlement resolves allegations that WCMHS over-budgeted case management hours for a Medicaid-recipient patient, provided only a fraction of the services that were billed to Medicaid, and failed to provide thorough case management services. The settlement resulted from an investigation conducted by the Attorney General's Medicaid Fraud and Residential Abuse Unit (MFRAU). Under the settlement agreement, WCMHS will pay $60,661.50 in restitution and penalties and audit certain Family-Directed services to ensure compliance going forward.

This matter was referred to MFRAU by the Department of Disabilities, Aging and Independent Living (DAIL). MFRAU's investigation found that, during the period when WCMHS was responsible for the respective client's case management services, WCMHS budgeted an excessive number of hours of such services, significantly more than what was provided. This excess was billed to the Vermont Medicaid program, while the beneficiary received only a small fraction of the services billed. At the same time, the case management services WCMHS provided to this beneficiary were inadequate-at times, months passed without a face-to-face visit between the case manager and the beneficiary, and WCMHS failed to ensure that other services the beneficiary received were within the program limits.

If you suspect Medicaid fraud, please submit a report using MFRAU's online reporting form.

The Medicaid Fraud and Residential Abuse Unit receives 75 percent of its funding from the U.S. Department of Health and Human Services under a grant award totaling $1,497,780 for Federal fiscal year FY 2026. The remaining 25 percent, totaling $499,260 for FY 2026, is funded by the State of Vermont.