State audit says Somerset County youth treatment provider must repay $1.5M to Medicaid
BERNARDS TOWNSHIP, N.J. (Somerset County) — A state audit found that Bonnie Brae, a provider of residential treatment services for youth, failed to adequately document required care under its Medicaid contracts and must repay more than $1.5 million to the Medicaid program.
The New Jersey Office of the State Comptroller announced the findings following an audit conducted by its Medicaid Fraud Division involving Bonnie Brae’s Liberty Corner facility in Bernards Township.
According to the report, auditors found Bonnie Brae’s records were “unreliable, inconsistent, and in some cases implausible,” preventing investigators from verifying whether the organization provided required therapy, psychiatric care and case management services to youths in its care.
The audit identified several alleged deficiencies, including missing documentation supporting required service hours, overlapping therapy sessions that could not have occurred as recorded, nearly identical progress notes across multiple patients and documentation showing services were provided while youths or staff members were reportedly absent.
Auditors also found Bonnie Brae allegedly failed to meet minimum required hours for clinical therapy and psychiatric services for multiple youths and employed two unlicensed clinical coordinators.
State officials said cumulative documentation suggested staff members performed hundreds more hours of services than reflected on employee timesheets — a discrepancy auditors estimated would require about 10 additional full-time staff members to explain.
Because of the documentation and compliance issues, the comptroller’s office concluded Bonnie Brae could not demonstrate that it met Medicaid regulations or contractual service requirements.
Medicaid paid Bonnie Brae about $34.4 million during the audit period and more than $91 million over a five-year span, according to the report.
“Accountability matters, especially when it comes to the care of some of New Jersey’s most vulnerable youth,” Acting State Comptroller Shirley U. Emehelu said. “Providers receiving Medicaid funding must deliver the services they bill for and maintain accurate records to prove it. When they fail to do so, we will take action to protect both Medicaid beneficiaries and taxpayers.”
The comptroller’s office recommended Bonnie Brae improve its documentation practices, ensure staff licensing compliance and reimburse the Medicaid program. Auditors also recommended the organization retain an independent third-party monitor to oversee compliance and reporting.
Bonnie Brae submitted a corrective action plan outlining steps it said it has taken or plans to take in response to the findings, but the organization did not address repayment of the identified overpayment, officials said.
