New Jersey Comptroller Identifies Medicaid Overpayments at Bonnie Brae
Published: 9/1/2026
On May 14, 2026, the New Jersey Office of the State Comptroller (OSC) released an audit report of Bonnie Brae, a Medicaid provider of residential treatment services for youths. The audit identified significant deficiencies in documentation and compliance with Medicaid and Department of Children and Families requirements, and recommended that Bonnie Brae repay $1,528,109 in Medicaid reimbursements.
Key findings in the audit report included:
- Service hours did not reconcile with employee timesheets, implying that staff furnished more hours of services than reflected in their timesheets.
- Individual therapy sessions that overlapped, which could not have occurred as documented.
- Nearly identical progress notes used for multiple patients and sessions, implying that care was not individualized.
- Documentation of services rendered to youth when other records indicated they were absent.
- Lack of documentation of required clinical, psychiatric, and case management services.
- Two clinical coordinators provided services while unlicensed.
The OSC recommended strengthened documentation and internal controls, verification of staff licensure, repayment of the identified overpayment, and independent monitoring. In response, Bonnie Brae submitted a corrective action plan addressing the OSC’s recommendations; however, Bonnie Brae did not address repayment of the overpayment. The audit highlights the importance of accurate, contemporaneous documentation, and effective compliance controls for Medicaid providers.
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Lani M. Dornfeld
CHPC, Member
Healthcare Law
973.403.3136 · 973.618.5536 Fax
ldornfeld@bracheichler.com
Richard B. Robins
Member
Healthcare Law, Litigation
973.447.9663 · 973.618.5977 Fax
rrobins@bracheichler.com
Related Practices: Healthcare Law
Related Attorney: Lani M. Dornfeld, Richard B. Robins
Related Industry: Healthcare
