AUGUSTA — AngleZ Behavioral Health Services, which closed temporarily in 2013 over federal fraud allegations that were later dropped, is contesting a claim that it overbilled MaineCare in that period and owes the state $392,603.

The agency offering mental health, behavioral and substance abuse services claims the state Department of Health and Human Services erred when it audited a sampling of 100 files and in calculating that the dollar amount.

In an appeal filed in Kennebec County Superior Court, the Augusta-based AngleZ Behavioral Health Services asks a judge to order the remaining 34 cases in the sampling reviewed and the figures recalculated.

AnnaLee Morris-Polley, CEO of AngleZ Behavioral Health Services, did not return a message this week seeking comment. The agency’s staffing includes two doctors, according to its website.

Attorney Jay McCloskey, who filed the appeal on behalf of AngleZ, said he has been successful in similar appeals.

“I’ve had occasions to go from allegations of $3 million to zero,” he said. “Ultimately, the superior court makes the final call on their allegations.”


The state, which is represented by Assistant Attorney General Thomas Bradley, maintains the agency overbilled for services. Bradley referred all questions to Tim Feeley, spokesman for the Maine attorney general’s office.

Feeley said via email that the case is “a pretty typical payment dispute.” He added, “It is not unusual for alleged overpayments to be reduced as the party produces documentation through the administrative process.”

In September 2013, AngleZ was one of two central Maine agencies whose MaineCare payments the state suspended over allegations of fraudulent billing.

Payments were restored in July 2014 after federal investigators declined to pursue further action.

“We were successful in getting them back in business,” McCloskey said.

Then in December 2014, AngleZ was notified by the state that an audit disclosed a $492,684 overpayment, an amount that was later reduced twice, once following an informal review and then again as a result of an administrative hearing.


McCloskey said any restitution owed for overbilling probably would be deducted from future payments.

AngleZ is appealing the decision of Mary Mayhew, who was commissioner of the Department of Health and Human Services on March 22, 2017, when she adopted a hearing officer’s conclusion “that the Department was correct, when for the review period of 2/13/2013 to 7/20/2013, it determined that AngleZ Behavioral Health Services owes the Department the sum of $392,603.31, related to assessment not being completed in a timely manner, invalid treatment plans, documentation not supporting the hours billed, and other documentation errors.”

In the appeal, AngleZ says earlier reviews found that the state erred in one-third of the 100 claims reviewed and failed to review 34 others.

“At the administrative hearing, 68 were in contention,” McCloskey said. “In 34 they found a fair amount of mistakes (in the amount allegedly overbilled). They didn’t review the next 34, but did the extrapolation as if the second 34 were all correct.” McCloskey called that “a very problematic assumption.”

The appeal case has been assigned to Justice Michaela Murphy, and no hearing is scheduled yet.

Betty Adams — 621-5631

[email protected]

Twitter: @betadams

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