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Williams Says School District Did Not Commit Medicaid Fraud

By Eileen Buckley

Buffalo, NY – Buffalo Schools Superintendent James Williams says the district did not commit Medicaid fraud by referring over 4,400 students for speech therapy in a single day. The findings were revealed earlier this week in a yearlong investigation by "The New York Times" on fraud and waste within the state's Medicaid system.

"We feel we did not violate any procedures," Williams said.

Williams and other top city school leaders say the correct process was followed by the district in seeking Medicaid dollars. Williams says all the guidelines were followed.

"Now to sign off on that document, you had to be a licensed speech pathologist," Williams explained.

The woman who actually conducted the final so-called "rubber stamping" of the documents is now retired. The district's chief fiscal officer, Gary Crosby, says the submission of the more than 4,000 Medicaid requests was conducted in September 2000, the start of a school year. He says that was not unusual. Crosby also denied allegations that the district was seeking the Medicaid reimbursements to help boost its revenues.

"This is not a money maker for the district," Crosby said. "The rigorous process that is in place simply makes that impossible. I say look at the audit. There are no findings of wrong doing where we may have tried to put students in the system that really didn't not qualify. There is not one single exception."

Nina Blumlein heads the district's revenue related services for special education. She says they followed the process based on the state's rules.

"These kids, regardless of whether it was Medicaid issue or not, would have been filed," Blumlein said. "We do not know, nor do the therapists know, who is Medicaid eligible. They are doing this on any initial referral that they made in processing."

There are 9,000 special needs students attending city schools. The district receives about $6 million a year in Medicaid revenues. But Superintendent Williams says based on poverty levels, he believes the district should actually receive much more. School officials say it is very costly to education students with special needs.