Congressman urges FBI to investigate whether New York defrauding Medicaid: 'Large financial scheme'

"Recent evidence suggests that for nearly two decades, the State of New York has deprived Nassau University Medical Center (NUMC) of more than $1 billion in Medicaid funds," Burlison says

Published: April 5, 2025 9:08am

Rep. Eric Burlison, R-Mo., a member of the House Oversight Committee and DOGE task force, is urging Attorney General Pam Bondi and FBI Director Kash Patel to investigate whether New York state is defrauding Medicaid with a "large financial scheme" involving matching payments for hospitals.

"Recent evidence suggests that for nearly two decades, the State of New York has deprived Nassau University Medical Center (NUMC) of more than $1 billion in Medicaid funds," Burlison  wrote in a letter to America's top two law enforcement officials on Thursday.

"The state stands accused of violating federal Medicaid law and intentionally breaching contracts with the federal government, specifically in relation to the Medicaid Disproportionate Share Hospital (DSH) program," he added.

The allegations that New York might be cheating Medicaid first surfaced a few months ago in civil litigation and in a New York Post column. Since then, Gov. Kathy Huchul's administration has denied wrongdoing, with a spokesperson alleging they are "false claims."

State legislators have upped the pressure for an investigation and resolution, even staging a rally at the State Capitol recently.

But Burlison's letter escalates those concerns to Congress and federal law enforcement at a moment when President Donald Trump and lawmakers are looking to root out fraud and save money under the DOGE banner.

"In what appears to be a large financial scheme, uncovered by hospital leadership, the State of New York stands accused of violating the terms of federal contracts by failing to fund the state's share of Medicaid payments from authorized sources," the Missouri congessman wrote.

"Substantiated evidence shows the transferring of money from NUMC's own accounts to the state. By law, this then enabled matching federal funds to be sent to the state," he added.

Burlison said NUMC has claimed that the funds were "transferred back to the state, requiring NUMC to effectively fund the State of New York's share itself."

In the letter, he referenced the NHCC lawsuit against New York to "prevent this illegal practice" from taking place in the future.

"Governor Kathy Hochul has now proposed changes in state law by means of their upcoming executive budget. The new law would allow the state to take the unprecedented step of assuming control of NUMC without any due process," he wrote. "This proposal appears to be an attempt to cover-up the state's theft of Medicaid funds by removing the leadership who exposed the State's malfeasance and assuming negligence on behalf of hospital."

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