Preferred Family exits

After another week of disturbing news stories describing the conduct of some of its employees, Preferred Family Health Care is pulling out of Arkansas.

To that, we say, “It’s about time.” Preferred Family is a Springfield, Mo.-based provider of mental health care and rehabilitation services that has 47 affiliates in Arkansas. Over the past several years, nearly $200 million of Arkansas Medicaid dollars and other money have flowed into its pockets, ostensibly to treat Arkansas clients. On Friday, the state of Arkansas announced the suspension of all contracts with Preferred Family operations after the arrest of yet another of its executives, this time for billing fraud.

On Tuesday, Preferred Family threw in the towel in Arkansas, saying it would work with the state to make sure the clients using their services would be taken care of, but acknowledging that their contracts would be canceled.

Last week’s events were just the sad continuation of a long line of revelations about how the company’s executives ran roughshod over state and federal regulations, taxpayers and just about any one else who got in the way.

Since January 2017, three former Arkansas lawmakers — Micah Neal of Springdale, Eddie Cooper of Melbourne and Hank Wilkins of Pine Bluff — pleaded guilty to accepting bribes or kickbacks to help out Preferred Family with cash grants and favorable legislative acts. Another, Jon Woods of Springdale, was convicted at trial of accepting kickbacks. The mastermind of the operation, a lobbyist and former head of Preferred Family in Arkansas named Milton R. “Rusty” Cranford, pleaded guilty in June to providing the bribes and kickbacks, converting company money to personal use and illegal lobbying.

The scandal also has ensnared another company executive, who pleaded guilty to embezzling from the company before committing suicide, and a Pennsylvania man who admitted to improper lobbying activities and bribe-taking.

Meanwhile, three top officials at Preferred Family in Missouri were forced out when the investigation came to light (none have been indicted, at least not yet). Others, including at least one elected official in Arkansas, may also face charges based on the revelations in various court filings.

Preferred Family claims it has cleaned house and is cooperating with a number of investigative agencies looking into the matter. Arkansas Gov. Asa Hutchinson said earlier the state put in new procedures to monitor the company’s work and to make sure services were being delivered as promised.

Then came the arrest last Thursday of Robin Raveendran of Little Rock. Raveendran, a former Preferred Family executive who previously worked for the state’s Medicaid program, is accused of fraudulent billing related to Medicaid claims in Arkansas between 2015 and 2017. The next day, Hutchinson and Attorney General Leslie Rutledge announced the suspension of the company’s contracts and began moving its Medicaid clients to other providers. Raveendran is, of course, innocent until proven guilty, but the facts already established in other cases make it clear that Preferred Family’s relationship with Arkansas’ Medicaid program must end. How can the public have trust in a company in which so many different people have already admitted guilt to criminal acts going back years?

The concern now shifts to the people who were receiving the services pledged by Preferred Family. Amy Webb, spokesman for the Arkansas Department of Human Services, said in most locations, providers have been identified who can replace Preferred Family affiliates. She also said that temporary “hardship” exceptions could be granted to allow Preferred Family to continue providing services until a replacement is found.

Fallout from this scandal will likely continue for some time as the process of finding new mental health and substance abuse counseling services across the state continues. This kind of distraction can’t be good for a client in need of that kind of assistance. We also wonder about the Preferred Family employees on the ground in Arkansas, who likely had nothing to do with billing practices, illegal lobbying or influence peddling. How many of them will lose their jobs and have their lives disrupted?

The violation of public trust has far-reaching implications. People who have never heard of Rusty Cranford or the other players in this tragedy are facing difficult circumstances through no fault of their own. These crimes, both proven and alleged, are about far more than money.