Taylor: Cleveland Medicaid Provider Owes State Nearly $900,000

Company improperly billed Medicaid program

Thursday, June 10, 2010

Cuyahoga County - Auditor of State Mary Taylor today released the audit of Adult Latchkey, Inc., a Cleveland-based Medicaid provider. The audit shows that the transportation provider owes the state $868,052.94 for improperly billed Medicaid services.

“Abuse of Ohio’s Medicaid system will not be tolerated,” Taylor said. “My office will continue to work to ensure that Medicaid providers who fail to follow state law are held accountable.”

The Ohio Department of Job and Family Services (ODJFS) reimbursed Adult Latchkey $802,612.53 for more than 62-thousand transportation services the company claimed it provided to Medicaid patients between July 1, 2004 and June 30, 2009. However, Taylor’s audit reveals that none of the services were valid and says the transportation company now owes every tax dollar back to the state plus $65,440.41in interest.
The primary billing problems that require Adult Latchkey to reimburse the Medicaid program include:

  • Transportation of patients who were not confined to a wheelchair
  • Transportation of patients to a location not covered by Medicaid
  • Services that lacked required proof of medical necessity
Taylor’s report also shows that Adult Latchkey would oftentimes pack one vehicle with multiple passengers, then bill the state as if each Medicaid patient was transported individually. This practice is forbidden and it allowed the company to bilk the state out of more money than it should have received.

Medicaid provider audits are a component of Taylor’s comprehensive approach to improving the efficiency and effectiveness of Ohio’s Medicaid program. Medicaid is currently the most costly program in state government.

The complete report is available online.


The Ohio Auditor of State’s office is a leader in the accounting and auditing field, earning prestigious national honors from the Government Finance Officers Association, the National White Collar Crime Center and the National State Auditors Association.

Steve Faulkner