Federal Crackdown on Medicaid Fraud in NYC Senior Care Centers

FLUSHING, N.Y. — Dr. Mehmet Oz, the Centers for Medicare and Medicaid Services Administrator, confronted employees at two senior care centers in New York City. The goal was to address suspected Medicaid fraud.

Dr. Oz, with federal health officials, delivered warning letters to Kent Senior Care and Evergreen Adult Day Care in Flushing, Queens. This was part of a larger initiative involving the FBI, the Department of Health and Human Services, the NYPD, and other agencies.

The letters highlighted concerns with the centers’ billing practices. This is part of a larger effort, as CMS officials visited over 80 locations in New York City.

Dr. Oz was joined by Fox News Digital as he questioned staff about their billing practices and how taxpayer money was being used.

Billing Practices Under Scrutiny

During a visit at 8:30 a.m., Dr. Oz handed a letter to Kent Senior Care’s director, indicating their billing methods were under review.

“The bills are much higher than they should be,” Dr. Oz stated.

Oz expressed skepticism about the facility’s claims about attendance and billing for services such as specialized transportation for wheelchair users. He noted the expenses did not reflect the number of attendees observed.

Recreational Activities Funded by Tax Dollars

During his visit, Dr. Oz questioned the use of Medicaid funds for recreational activities like mahjong. The director argued that such activities help seniors with cognitive difficulties, providing social and physical benefits.

Oz responded by questioning whether Medicaid funds should prioritize more critical healthcare needs.

Further Concerns Raised Over Attendance Records

Dr. Oz noticed inconsistencies in the facility’s sign-in procedures. He saw seniors enter without signing attendance sheets, raising suspicions about the accuracy of records.

Social adult day care programs reimburse based on various criteria, including proper service documentation.

Suspicion of Organized Crime

Dr. Oz suggested organized crime networks might exploit these Medicaid programs. He alleged seniors were paid to participate in fraudulent billing, sometimes linked to higher billing trends.

Authorities suspect the fraud proceeds finance other criminal activities, including money laundering and human trafficking.

Broader Law Enforcement Involvement

This crackdown is part of a broader initiative by state and federal law enforcement. New York Gov. Kathy Hochul confirmed state officials are involved.

Investigations into these facilities continue, with law enforcement conducting searches across New York City. However, specifics on targeted facilities and evidence are yet to be disclosed.