Dr Mehmet Oz flags alleged Minnesota Medicaid fraud as former factory housed 400 businesses

Dr Mehmet Oz said about 400 Medicaid businesses operated there for years generating roughly $380 million in taxpayer funded Medicaid billing
Dr Mehmet Oz and Jim O’Neill, the Deputy Secretary of Health and Human Services, alleged that a large Medicaid fraud operation had been uncovered in Minnesota during a visit to Minneapolis (Screengrab/CMS Administrator Dr Oz/Facebook)
Dr Mehmet Oz and Jim O’Neill, the Deputy Secretary of Health and Human Services, alleged that a large Medicaid fraud operation had been uncovered in Minnesota during a visit to Minneapolis (Screengrab/CMS Administrator Dr Oz/Facebook)


MINNEAPOLIS, MINNESOTA: Administrator of the Centers for Medicare & Medicaid Services (CMS) Dr Mehmet Oz, and Jim O’Neill, Deputy Secretary of Health and Human Services, have allegedly uncovered a new massive Medicaid fraud in Minnesota.

The focus is the Griggs Midway building, a former linen factory reportedly converted into hundreds of businesses billing Medicaid. The announcement comes amid the Trump administration's large-scale crackdown on welfare fraud and has sparked congressional scrutiny over the misuse of taxpayer funds in the state.

HOLLYWOOD, CALIFORNIA - FEBRUARY 11: Dr. Mehmet Oz receives a star on the Hollywood Walk of Fame on
Dr Mehmet Oz receives a star on the Hollywood Walk of Fame on February 11, 2022 in Hollywood, California (JC Olivera/Getty Images) 

Dr Mehmet Oz raise allegations of welfare fraud

Dr Oz detailed the unusual nature of the operation, "Behind me is the Griggs Midway building. It looks like a factory because it was a factory. They made cloth back there, converted it to an office building. You'll notice all those little signs there, and there's tons of little businesses inside."

He reported that "roughly 400 Medicaid businesses were started in the building behind me over the last several years. They generated about $380 million of billing that you, the taxpayer, were putting up. That means roughly each business had a million dollars of billing."

Dr Oz questioned how the businesses could exist in an industrial area, "It's just not a hospitable place. The question is, how is it possible 400 businesses, billing almost $400 million, were able to thrive here? What did the owner of the business, this building, think was happening inside? Why did no one in the state figure out this was a concern?"

U.S. Border Patrol Commander Gregory Bovino (C) looks on as he is confronted by community members on January 21, 2026 in Minneapolis, Minnesota. The Trump administration has sent a reported 3,000 federal plus federal agents into the area, with more on the way, as they make a push to arrest undocumented immigrants in the region. (Photo by Stephen Maturen/Getty Images)
Border Patrol Commander Gregory Bovino looks on as he is confronted by community members on January 21, 2026 in Minneapolis, Minnesota (Stephen Maturen/Getty Images)

He continued, "Perplexingly to me, in a place of this nature, an industrial complex that people would not come to for child care or autism care or transportation support, how is it possible this could come up like an abscess in the heart of Minneapolis and nobody was watching?"

Dr Oz highlighted how state authorities overlooked the issue, "I think it's because they weren't looking. They didn't want to know that this problem was happening here."

He also emphasized the need for federal oversight: "It's very concerning to me that only now, when there's more federal supervision, are people beginning to ask tough questions."

Dr Oz also noted that observers were monitoring their visit, "So you'll notice there's already a watch group that's observing us."

WASHINGTON, DC - OCTOBER 08: Independent journalist Nick Shirley speaks during a roundtable discussion in the State Dining Room of the White House on October 08, 2025 in Washington, DC. Trump’s administration held the roundtable to discuss the anti-fascist Antifa movement after signing an executive order designating it as a “domestic terrorist organization”. (Photo by Anna Moneymaker/Getty Images)
Independent journalist Nick Shirley speaks during a roundtable discussion in the State Dining Room of the White House on October 08, 2025 in Washington, DC (Anna Moneymaker/Getty Images)

House oversight probes welfare fraud and Nick Shirley’s role

Finally, Dr Oz spoke about the state’s response to scrutiny, "But the fact that you've got people behind me in cars concerned that we're even talking about this story, should be something that worries you. It bothers me. There's been a censoring of truth and inability just to own what's happening in their state."

House Oversight Committee Chairman James Comer announced Friday, January 23, that he was widening the congressional investigation into alleged Medicaid fraud in Minnesota.

In a letter to Minnesota Legislative Auditor Judy Randall, Comer requested documents and communications related to any review of the Minnesota Department of Human Services and fraud allegations. He also requested that the temporary commissioner at DHS be interviewed on January 30.



The allegations follow earlier reporting by Independent journalist Nick Shirley, who visited apparently vacant daycare centers in Minnesota and suggested that millions of taxpayer dollars were funding these empty facilities.

Shirley’s video prompted scrutiny and led to a congressional hearing titled “Oversight of Fraud and Misuse of Federal Funds in Minnesota: Part I.” During the hearing, he also testified and suggested that similar fraud could exist in California.

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