Overview
- An Office of the Legislative Auditor review released Tuesday says DHS at times declined kickback probes despite having authority, including three of 25 sampled complaints.
- Auditors identified a roughly 30‑year‑old rules error that clouded DHS’s ability to suspend provider payments during kickback investigations.
- The report urges DHS to explicitly include kickbacks in its administrative fraud definition and to clarify authority to withhold or reduce payments on credible allegations.
- Inspector General James Clark says DHS will seek a statutory fix this session with an Aug. 1 effective date, with a rulemaking fallback that could take up to two years.
- Federal investigations and prosecutions tied to the EIDBI program continue, including a $14 million case involving Smart Therapy, even as auditors found most prior OIG decisions were reasonable.