FLUSHING, N.Y. —

Dr. Mehmet Oz, the Administrator of the Centers for Medicare and Medicaid Services, visited two senior care centers in New York City to address concerns over suspected Medicaid fraud. This incident, which was exclusively covered by Fox News Digital, involved Oz questioning employees about their billing practices.

Accompanied by senior federal health officials, Oz delivered warning letters to both Kent Senior Care and Evergreen Adult Day Care in Flushing, Queens. These visits are part of a larger crackdown involving various agencies including the FBI and the NYPD.

The letters informed the facilities that their billing practices had raised red flags among federal officials. Oz’s visits were included in a broader effort where CMS officials conducted over 80 site visits in New York City and issued warnings to multiple providers.

During his visit, Oz pressed the employees regarding questionable billing records and the spending of taxpayer dollars. “The whole experience felt a bit off,” he mentioned in an interview following his visits.

Oz questions senior center director: ‘We don’t believe you’

The first stop was at Kent Senior Care around 8:30 a.m., where Oz personally handed the director a letter notifying them of the scrutiny over their billing methods.

“The bills are significantly higher than they should be,” Oz pointed out to the director. “And yet, the place doesn’t seem quite packed.” The director defended the center by stating that more seniors would arrive later in the day, aiming to justify their billing practices.

Despite the explanation, there was an evident discrepancy as the occupancy sign indicated a maximum capacity of 70, yet the billing appeared to reflect a full attendance consistently. Oz noted, “The bills imply that it’s always at full capacity.” The director insisted on the accuracy of their billing, claiming they only billed for actual attendees.

Throughout their exchange, Oz pushed for clarity, highlighting inconsistencies in records that suggested seniors were billed for attending almost every day, while many typically came only a couple of days a week.

The discussion escalated as Oz questioned charges related to specialized transport services for seniors requiring wheelchairs, prompting skepticism since none were observed during his visit.

“I don’t see any wheelchairs here,” he remarked, noting that several seniors were seen using walking aids instead. The director mentioned that wheelchairs were available, but perhaps errors occurred in billing records due to the copying of previous information.

Oz raises concerns over seniors entering without signing in

Oz also expressed concern when he noticed seniors entering without signing attendance logs, despite the director’s claims that documentation was mandatory. “People were just walking in without signing anything,” he remarked. This only heightened doubts regarding whether the center’s records were truly reflective of the services billed to Medicaid.

The second facility visited, Evergreen Adult Day Care, had its own set of discrepancies that caught Oz’s attention. A manager claimed approximately 200 seniors attended on certain days, yet Oz’s observations noted far fewer individuals present during his walkthrough.

During the visit, Oz also examined attendance logs, revealing entries dated after the day of visitation, leading to questions about whether attendance was being documented in advance rather than accurately.

Oz alleges organized crime ties to NYC Medicaid fraud

Oz raised serious allegations about organized criminal networks exploiting Medicaid programs, suggesting some seniors were being paid by individuals linked to organized crime to participate in fraudulent arrangements. He claimed some were offered between $1,000 and $1,200, although specific evidence was not presented during the interview.

According to Oz, there have been significant spikes in billing over the years, leading to annual expenditures nearing $1 billion. He emphasized that the billing practices being reported did not reflect a legitimate operation.

Oz was particularly vocal about his concerns regarding potential ties to other criminal activities, including money laundering, stating the fraudulent efforts had intensified during the COVID-19 pandemic. He criticized the previous administration for not sufficiently addressing these issues.

Governor Kathy Hochul acknowledged the operation, defining it as part of a larger initiative against Medicaid fraud, confirming state health officials have collaborated with law enforcement on this matter.

While Oz handed warning letters to the two Queens facilities, other law enforcement bodies were simultaneously conducting searches at various locations throughout New York City, and the details of the ongoing investigations remain under wraps.