April 20, 2009 (FinancialWire) — HMS (NASDAQ: HMSY) said that it had been awarded a contract to audit community mental health and other behavioral health providers that participate in the Virginia Medicaid program. The contract is for three years, with three additional optional renewal years.

Under the award, HMS will perform audits of in-state and out-of-state provider services, including outpatient psychotherapy and substance abuse, therapeutic day treatment, mental health support services, and in-home therapy.

HMS said will provide Virginia health officials with information necessary to validate or substantiate erroneous claims or issues, notify providers of audit findings, and support recovery of any overpayments.

New York-based HMS coordinates benefits and program integrity services for government healthcare programs. The company’s clients include health and human services programs in more than 40 states, 90 Medicaid managed care plans, the Centers for Medicare and Medicaid Services, and Veterans Administration facilities.

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