Dr. Oz detailed concerns about potential Medicaid fraud and lack of oversight in Minnesota while standing outside a former factory building he said had been converted into hundreds of Medicaid-related businesses generating hundreds of millions of dollars in taxpayer-funded billing.
Dr. Oz spoke alongside Jim O’Neill while describing the Griggs Midway building in Minneapolis, a former linen factory now used as office space, which he said became home to an unusually large concentration of Medicaid providers.
“Behind me is the Griggs midway building. It looks like a factory because it was a factory, a linen factory. They made cloth back there, converted to an office building,” Dr. Oz said.
“You’ll notice all those little signs there, and there’s tons of little businesses inside.”
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According to Dr. Oz, the scale of Medicaid billing tied to the building raised immediate red flags.
“Roughly 400 Medicaid businesses were starting the building behind me,” he said.
“Over the last several years, they generated about three $80 million of billing that you the taxpayer were putting up. That means roughly each business had a million dollars of billing.”
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Dr. Oz questioned how such a volume of billing could occur in what he described as an unsuitable location for the types of services allegedly being provided.
“It’s an industrial area. There’s no reason that you’d have a mother bring her child there, but you can’t imagine getting extra business support,” he said.
“An autistic child probably wouldn’t want to come here. You hear the noise. It’s just not a hospitable place.”
He said the situation raised serious questions about oversight, ownership awareness, and regulatory enforcement.
“The question is, how is it possible 400 businesses building almost $400 million were able to thrive here?” Dr. Oz said.
“What did the owner of the business this building think was was happening inside? Why did no one in this day figure out this was a concern and perplexity to me.”
Dr. Oz said the location and nature of the building made the billing activity especially troubling.
“In a place of this nature, an industrial complex that people would not come to for child care or autism care or transportation support,” he said.
“How is it possible this could come up like an abscess in in the heart of Minneapolis, and nobody was watching?”
He attributed the lack of scrutiny to a failure or unwillingness to investigate.
“I think it’s because they weren’t looking,” Dr. Oz said. “They didn’t want to know that this problem was happening here.”
Dr. Oz said meaningful scrutiny only began after increased federal involvement.
“And it’s very concerning to me that only now, when there’s more federal supervision, are people beginning to ask tough questions,” he said.
He also described what he said was visible resistance to public discussion of the issue.
“So you’ll notice there’s already a watch group that’s observing us, that people in cars taking pictures of us,” Dr. Oz said.
“They’re calling around trying to find out what’s going down.”
According to Dr. Oz, the presence of observers reinforced concerns about transparency.
“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,” he said.
“It bothers me.”
Dr. Oz said the alleged fraud has real consequences for Minnesota residents who rely on Medicaid services.
“We’re here to figure out why these folks are being defrauded, why the people who live in Minnesota aren’t getting access to the care they deserve because it’s been stolen,” he said.
He concluded by criticizing what he described as a culture resistant to confronting uncomfortable realities.
“There’s been a censoring of truth and inability just to own what’s happening in their state,” Dr. Oz said.
“They talk about being nice. In Minnesota, I want to be nice too, but a person who’s a good person doesn’t have to always be nice. They’ve got to be truthful and be honest, and sometimes you got to tell people stories they don’t want to hear.”
“That’s what doctors do,” he added, “and that’s what we’re going to do here in Minnesota, tell you the truth.”
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