Dr. Oz Leads Federal Crackdown on Suspected Medicaid Fraud at NYC Senior Care Centers

Centers for Medicare and Medicaid Services (CMS) Administrator Dr. Mehmet Oz, accompanied by federal health officials, confronted staff at two New York City senior care centers over suspected Medicaid fraud. The visits, part of a broader crackdown involving the FBI and other agencies, saw warning letters issued to Kent Senior Care and Evergreen Adult Day Care in Flushing, Queens, notifying them of concerns regarding their billing practices.

During the inspections, Oz pressed employees about questionable billing records and sought explanations for how taxpayer dollars were being utilized. "The whole experience was suspicious," Oz told Fox News Digital in an interview following the visits.

At Kent Senior Care, Oz directly addressed the facility's director, stating, "The bills are much higher than they should be." He questioned discrepancies between billed attendance and the actual number of seniors present, noting, "The billing is for more people. It doesn't look very crowded here." The director asserted that the facility billed only for attended sessions and required participants to sign attendance sheets. However, Oz countered, "You're getting this letter from the US Government because we don't believe you."

Further scrutiny focused on specialized transportation services billed for seniors using wheelchairs. Oz pointed out the lack of visible wheelchairs at the facility, despite billing records suggesting their use. The director explained that some seniors had mobility issues and that wheelchairs were available, while also suggesting billing codes might have been incorrectly copied. Oz also questioned the use of Medicaid funds for recreational activities like mahjong, asking, "Should the American taxpayers be paying so folks can play mahjong?"

Oz also observed seniors entering Kent Senior Care without signing in, despite the requirement for documentation. Fox News Digital witnessed some seniors entering without immediately signing attendance sheets, though later arrivals were instructed to do so. This inconsistency, Oz argued, raised further questions about the accuracy of attendance records submitted for Medicaid billing.

At Evergreen Adult Day Care, Oz questioned a floor manager about billing discrepancies. While the manager estimated a daily attendance of up to 200 seniors on certain days, Oz observed significantly fewer individuals present. He also noted discrepancies in wheelchair billing, with the manager initially stating no participants used wheelchairs before acknowledging a small number did.

Attendance records at Evergreen Adult Day Care also came under fire when Oz pointed to sign-in sheets that appeared to contain future dates, Oct. 22 and Oct. 23, which had not yet occurred at the time of the visit. This raised concerns about whether attendance was being documented in advance.

Oz stated that federal authorities believe organized criminal networks are exploiting Medicaid-funded programs by paying seniors to attend facilities, thereby enabling fraudulent billing for unprovided services. He alleged that individuals connected to the "Chinese mafia" were offering seniors between $1,000 and $1,200 to participate in these schemes, though no specific organization or evidence was presented during the interview. Oz suggested that proceeds from such fraud could be financing other criminal activities like money laundering and human trafficking.

New York Governor Kathy Hochul acknowledged the crackdown as a "massive effort to combat fraud and abuse" in Medicaid, confirming state health officials' involvement. Simultaneously with Oz's visits, other federal and state law enforcement agencies were conducting searches at additional locations across New York City as part of the coordinated investigation. Specific details regarding targeted facilities, individuals, and evidence remain undisclosed as the investigations are ongoing.