Predatory Treatment Center Recruiters are Targeting Native Americans

An example of predatory recruiters shown on a billboard. Photo provided by Amity Foundation President & CEO Doug Bond.

A recent increase in phony and fraudulent health clinics, alcohol and drug-free homes, and recovery programs that target Native American populations has driven the State government of Arizona to begin to take action in an effort to prevent the practice.

Scam sober homes and health care clinics in Arizona push Native Americans to enroll for healthcare benefits under the Arizona Health Care Cost Containment System (AHCCCS), which partners with the federal Indian Health Service to pay for behavioral health services for members of federally recognized tribes. These fraudulent practices then bill for benefits never delivered to at-risk Native Americans.

Federal and State agencies including the FBI have begun to ask victims to come forward in order to identify and stop these types of scams. Possible signs of this are offering benefits that are never provided or operating in ways outside of State regulations (including, for example, operating with fewer than 6 residents in the Phoenix area, operating within a designated distance of another recovery facility, etc.)

As of May 23rd, 2023, more than 100 Arizona healthcare providers are under investigation for this. It is estimated that these schemes cost taxpayers hundreds of millions of dollars. Arizona Gov. Katie Hobbs said that “[Arizona] is announcing actions against over 100 providers of behavioral health, residential, and outpatient treatment services", and then continued to remark that the State has “credible reason to believe that they have defrauded the state’s Medicaid program”.

Both State and Tribal leaders have said that these schemes and acts of fraud are targeting some of the most vulnerable populations amounting to a widespread humanitarian crisis. Not only are services exaggerated and/or not provided at all, but in some cases those seeking treatment are “encouraged” to continue using drugs and alcohol according to the Governor. Additionally, instances of individuals being reported as missing have been found completely abandoned in “behavioral health facilities”.

In an effort to combat these fradulent practices directly, the Navajo Nation announced that it is launching “Operation Rainbow Bridge” to help individuals in need find legimate and licensed facilities to help. You can read more about this initiative here.

We would like to ask our community and our tribal partners to remain extremely vigilant during this time in order to avoid and stop these fraudulent practices. Below are articles and downloads containing additional information on these practices that may be useful in helping identify these schemes.

1. Full list of suspended organizations

2. FBI investigates rehab scams targeting Indigenous community

3. Arizona Investigating Multi-Million Dollar Medicaid Scheme Targeting Native Americans

4. They were promised help getting sober and a fresh start. Instead they ended up stranded in Arizona

5. Phony 'Sober Living' Homes in Arizona Target Vulnerable Native Americans

6. Navajo Nation Launches Operation Rainbow Bridge in Response to Arizona Medicaid Fraud Investigation