Feds launch Medicaid fraud crackdown in NYC adult day care centers

Tara covers the business of health care. Her stories focus on hospitals, doctors, and how their business practices affect patients — especially when private equity gets involved. She also writes about health insurance and ideas for improving our broken health system. You can reach Tara on Signal at tarabannow.70.

Just one week after being granted the authority to kick providers off of federal health care programs, U.S. health officials are using it on adult day care centers in New York City they say are committing fraud.

Officials with the Centers for Medicare and Medicaid Services held a press conference Wednesday to announce that and other actions the agency is taking to crack down on fraud in New York’s Social Adult Day Care program. The program is meant to provide socialization, personal care, and meals to adults with physical and cognitive impairments, but CMS officials say it’s rife with fraud. CMS administrator Mehmet Oz even called the program, known as SADC, “a plague to the state.”

“It’s outrageous to see fraud, waste, and abuse demolishing programs that could have been helpful to seniors, especially those who are frail and suffering at home,” Oz said.