CMS Administrator Dr. Mehmet Oz and HHS Deputy Secretary Jim O’Neill said they uncovered an extraordinary concentration of Medicaid billing activity at a former linen factory in Minnesota that they believe raises serious oversight questions and potential fraud concerns. During a January 23, 2026, federal fact‑finding visit, the officials pointed to the Griggs Midway building in St. Paul — once a linen factory — which has been converted into office space for roughly 400 entities that have billed Medicaid for services. According to Oz, the collective billing from these entities amounts to about $380 million over recent years, a figure that averages roughly $1 million per business.

Oz described the site as an industrial complex that would be an unlikely location for legitimate service providers such as child care, autism treatment, or transportation services, and said the volume of billing activity “raises questions” about how the arrangements were allowed to grow with minimal state oversight. He said the unusual nature of the building’s use and the scale of claims suggest that state authorities may not have adequately monitored or questioned the proliferation of registered providers at that address.

The announcement came amid an ongoing Trump administration crackdown on fraud, waste, and abuse in federal programs, including Medicaid, with federal and state officials increasingly focused on rooting out questionable billing practices. Oz’s remarks have drawn congressional attention and prompted lawmakers to request additional documents and testimony as part of oversight into Minnesota’s Medicaid programs.

Minnesota has faced numerous Medicaid fraud investigations in recent years, including cases involving inflated claims for autism therapy and housing stabilization services, which have resulted in federal charges and significant payouts to the U.S. attorney’s office. Critics of the state’s oversight say the latest findings underscore systemic vulnerabilities in how provider credentials and billing activity are monitored, while state officials have acknowledged the need to work with federal partners to address fraud and strengthen program integrity.

Officials emphasize that allegations of fraud remain subject to investigation, and providers are presumed innocent unless and until proven otherwise in court. Federal, state, and local authorities continue to examine billing patterns and regulatory compliance as part of broader efforts to ensure that taxpayer‑funded benefits reach eligible patients and are not diverted through schemes that exploit loopholes in public health programs.