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Governor Granholm Issues Executive Order to Further Fight Fraud, Waste, Abuse in Health Services Programs

Contact: Liz Boyd 517-335-6397

February 19, 2010

Office of Health Services Inspector General will be independent watchdog

LANSING - Governor Jennifer M. Granholm today issued Executive Order 2010-1 to further fight fraud, waste and abuse in state health services programs by establishing the Office of Health Services Inspector General.  The office will be an independent and autonomous entity within the Department of Community Health and is one of the 29 government reforms outlined by the governor in January to transform Michigan government.
The Office of Health Services Inspector General will work to prevent, detect and investigate fraud, waste and abuse in the state's Medicaid, mental health, MIChild and Children's Special Health Care Services programs.  The health services inspector general will be appointed by the governor.
"Although the Department of Community Health has been successful in fighting fraud, waste and abuse, these responsibilities now will be consolidated in the Office of Health Services Inspector General along with an increased focus on specific auditing and fraud prevention goals," Granholm said.  "The inspector general will be an independent watchdog whose top priority will be safeguarding taxpayer dollars."
Duties of the Office of Health Services Inspector General include:
-  soliciting, receiving and investigating complaints related to fraud, waste and abuse in health services programs;
-  assuming the Department of Community Health's duties under federal law with respect to fraud, waste and abuse for the administration of health services programs in the state;
-  seeking out fraudulent billing practices of providers and developing techniques and procedures for detecting suspect billing patterns; and
-  recommending to the governor and the director of the Department of Community Health policies that will prevent and better detect fraud, waste and abuse in health services programs.
Personnel within the Department of Community Health currently assigned to combat fraud, waste and abuse in health services programs will be transferred to the new office. 
Pending legislative review, Executive Order 2010-1 will take effect October 1, 2010.
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