Fraud at Arizona behavioral health homes limits options for families in need

PHOENIX — As an Arizona Mad Mom, the marathon is constant and the hurdles are endless.

“I had been going through this battle,” said Beth Pera. “[I] thought I was the only person on the planet.”

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Beth Pera learned about Arizona Mad Moms in 2024, when she felt hopeless trying to navigate the behavioral health system with her 29-year-old son Nick, who has schizophrenia.

The growing group, in part, lobbies lawmakers for better services for those with a serious mental illness and more oversight in Arizona’s behavioral healthcare system.

“I had to find out from moms in T-shirts how to do this,” Pera said. “Or I probably wouldn’t be here and neither would my son.”

Pera became her son’s legal guardian, got him on different medication, and learned how to advocate.  

She thought they had everything figured out when she said her son was placed in a behavioral health home, known as a BHRF, in June 2024.

But just a few months later in September, things took a turn for the worse.

“They tried to send him into psychosis,” Pera alleged.

For someone with schizophrenia, medication can be a life-or-death issue.

And on that day, Pera claimed staff was trying to give her son the wrong medication.  

“And then they yelled at him,” Beth said.  “And when he threatened to call the police, my husband and I…we just said we’re getting you. Don’t say a word.”

They pulled him out of the home that night.  Now, Nick stays with them full time.

“We are very blessed that I can do this,” Pera said. “Because there’s so many that can’t .”

Pera filed a grievance against the behavioral health company, reporting, in part, that staff tried to give her son the wrong medication.  

Ultimately, Mercy Care, the state agency that investigates complaints ultimately found her grievance “not substantiated. “

“I was furious,” Pera said, adding that she felt the decision didn’t even address the medication issue.

12News is not naming the company because the allegations were not substantiated, although Beth is appealing. The company declined our interview request, citing company policy and HIPAA guidelines. 

The I-Team met with Pera while working on a story about “mom-dumping,” a phenomenon when families take in their loved one with a serious mental illness because services from the state aren’t working.

“It is a trust issue,” said Arizona State Senator Catherine Miranda.  “It’s a system that has failed many families. “

For the past few legislative sessions, Senator Miranda has tried to shine a spotlight on issues involving serious mental illness and gaps in Arizona’s mental healthcare system, including the lack of housing options.

When asked about whether there’s fraud in Arizona’s behavioral health care system, Senator Miranda admitted it takes a toll.

“There is absolutely fraud,” Senator Miranda said.  “But during the time that we’re navigating it and trying to identify where the fraud is we cannot punish the legitimate facilities. So there has to be a balance.” 

There is overlap with the state’s sober living home crisis where some providers billed the state for services that weren’t happening.

Arizona Attorney General Kris Mayes estimates that fraud cost Arizona taxpayers more than $2 billion.

The I-Team obtained new records that show since 2023, AHCCCS terminated contracts with more than 150 behavioral health providers for fraud.

“I’m surprised it’s not higher,” said Beth Pera.  “Because there’s no oversight.”

“If you took the fraud away from these people and put it here, then we could have more hospitals,” Pera added. “Then we would have more people getting treatment – real treatment.  Not kicked out, not mom dumped.

This month, Pera said she got a letter from AHCCCS saying, in part, that her grievance would be returned to Mercy Care for further investigation because it “didn’t address the allegations about medication error(s) and the alleged inappropriate use of funding.” 

In a statement, the behavioral health company’s CEO said they “vehemently deny any allegation of fraud” and want to focus on providing services to their residents.

Mercy Care said it couldn’t comment on individual cases and AHCCCS declined our request for an interview.

“Who do you think should be accountable when it comes to ensuring these systems are working correctly for these families? ” asked the I-Team’s Erica Stapleton.

“I think through audit, our audit department should be at the table,” Senator Miranda said. “Senators, representatives. We should follow up on what we present here, what we propose here.”

Beth Pera recently joined an independent oversight committee as a volunteer.  Part of the group’s work is to do unannounced visits to group homes and they can report issues to the state.

Her son Nick is doing well at home.  She said he’s in recovery and helps peer support others.

But the marathon is still far from over before mad moms can just be moms again.

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