FOR IMMEDIATE RELEASE                                         CIV
THURSDAY, JANUARY 25, 1996                         (202) 616-2765
                                               TDD (202) 514-1888

                                 
             U.S. SUES OKLAHOMA HEALTH CARE FACILITY 

     WASHINGTON, D.C. -- The United States has sued an Oklahoma
health care corporation, alleging that its subsidiary submitted 
false bills and fraudulently billed the government for payment
under three federal health care insurance programs, the
Department of Justice announced today. 
     Assistant Attorney General Frank Hunger of the Civil
Division said the Department filed an amended complaint January
19 against Community Psychiatric Centers of Oklahoma Inc.  The
complaint alleged that the company's psychiatric hospital, CPC
Southwind in Oklahoma City, Oklahoma, submitted the false bills.
     The complaint was filed initially in 1994 by Lisa Aranda and
Gayle DeWitt against Community Psychiatric Centers in U.S.
District Court in Oklahoma City under the qui tam provisions of
the False Claims Act, 31 U.S.C.  3730.  The United States
intervened in the case in April 1995.
     The government's complaint alleged that CPCO, since at least
1993, fraudulently billed Medicaid, Medicare and the Civilian
Health and Medical Program of the Uniformed Services for
psychiatric services that were not rendered or were provided by
inappropriate personnel.  CHAMPUS provides health and mental
coverage to dependents of members of the military.  
     In addition, the complaint alleged that CPCO improperly
altered medical records to pass state and federal hospital
inspections and, in some instances, billed the government twice
for the same treatment. 
     The complaint also said CPCO provided poor, inadequate and
unsafe treatment to adolescent patients admitted for sexual
problems under the Medicaid program, which resulted in sexual
abuse among the patients.  If the government had known about the
facility's poor and unsafe conditions, it would not have placed
the patients in the facility nor paid for their treatment,
according to the complaint.  
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96-017