Los Angeles 'Ground Zero' for Rehab Fraud

Millions paid out in questionable billing


The Center for Investigative Reporting (CIR) and CNN joined forces to expose wide-spread fraud among Southern California drug and alcohol rehabs, declaring the Los Angeles region as "ground zero for the rehab racket."

California's Drug Medi-Cal "paid out $94 million in the past two fiscal years to 56 clinics in Southern California that have shown signs of deception or questionable billing practices, representing half of all public funding to the program," CIR and CNN report.

Additionally, CIR and CNN say L.A. County Supervisor Mark Ridley-Thomas and his staff may have applied political pressure on a county administrator on the behalf of a shady rehab clinic.