CAMBRIDGE, Md. (AP) — Maryland health officials say they have stopped Medicaid payments to an Eastern Shore drug treatment and mental health clinic being investigated for fraud.

State health investigators disclosed Wednesday that they have uncovered evidence officials at Warwick Manor Behavioral Health, Inc. near Cambridge overbilled and charged for the work of physicians who were not at the facility.

The clinic treats about 2,000 patients a year and billed the state’s Medicaid program $1.5 million last year.

Maryland’s new health secretary, Dr. Joshua Sharfstein, said Wednesday that he has asked his chief of staff to review the department’s oversight. The department is expected to be a budget-cutting target as the state looks to deal with a $1.6 billion budget gap.

(Copyright 2011 by The Associated Press. All Rights Reserved.)

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