Review of Short/Doyle Medicaid Payment Rates

Our audit disclosed that the Medicaid rates set for Short/Doyle services exceeded reasonable limits established by Federal law and regulations. Short/Doyle is one component of the California Medicaid program serving the mentally ill. We found that expenditures were 21 percent higher (or $3.6 million more) than reasonable allowances under the Medicare program for the same or similar services. Also, expenditures were 87 percent higher (or $9.5 million more) than the maximum permitted under California's regular Medicaid program.