The New Jersey Office of the State Comptroller audited Bonnie Brae, a Bernards Township residential treatment provider, and found unreliable and incomplete documentation of Medicaid-covered services for vulnerable youth, proposing a repayment of about $1.5 million.

Audited records showed overlapping therapy sessions, nearly identical progress notes across multiple patients, and services documented for youths who were absent or for coordinators who were absent, including the employment of two unlicensed clinical coordinators.

Bonnie Brae operated six programs under two DCF contracts, with per diem rates rising over time and final ceilings totaling about $100 million across contracts during the period.

OSC targeted high-risk areas such as clinical therapy, case management, and psychiatric services, using February 2020 as a sampled month and February 2021 for a follow-up to verify hours and services.

The audit concluded Bonnie Brae failed to document required clinical and other services adequately and may have provided fewer services than required under Medicaid.

OSC required Bonnie Brae to repay roughly $1.528 million and implement corrective actions, including enhanced documentation controls, staff hiring/training, and procedural updates, and Bonnie Brae submitted a corrective action plan committing to compliance and addressing staffing and documentation.

The provider stated it would comment on the findings by the end of the day.

OSC’s broader concerns center on accountability for Medicaid-funded care to emotionally and behaviorally vulnerable youth, highlighting the need for improved documentation, licensed staff verification, and independent monitoring.

OSC emphasized that providers must deliver billed services with verifiable records, recommending enhanced documentation, license verification, and reimbursement controls.

The report underscores accountability for Medicaid-funded providers serving vulnerable youth and provides guidance on reporting fraud or seeking updates.

Context from a 2015 DCF audit noted inadequate documentation for therapy and case management; OSC’s 2026 report reiterates ongoing concerns about internal controls and documentation reliability.

Bonnie Brae, established in 1916, operates a 100-acre Liberty Corner campus with residential treatment, a school, cottages, and community homes, serving emotionally disturbed youth under DCF oversight.