A former industrial building on the edge of Minneapolis is being cited by federal officials as a stark illustration of how Medicaid fraud can flourish when oversight breaks down.
During a site visit this week, Mehmet Oz, administrator of the Centers for Medicare & Medicaid Services, and Jim O’Neill, deputy secretary of the U.S. Department of Health and Human Services, toured the Griggs Midway building, a former linen factory converted into office space.
You’d never believe the kinds of fraud schemes happening in Minnesota. @HHS_Jim and I were taken aback to say the least.
Here’s just a snippet of what we saw on the ground and are working to stop. pic.twitter.com/UNgpjrMoIk
— DrOzCMS (@DrOzCMS) January 23, 2026
In a video posted to X on January 23, Oz said federal reviews show roughly 400 Medicaid-related businesses were launched from the single address over several years, generating about $380 million in billings — an average of roughly $1 million per provider. The concentration, Oz argued, defies common sense given the site’s location in an industrial zone ill-suited for services such as child care, autism therapy, or transportation for vulnerable patients. “No place a mother would bring an autistic child for care,” he said.
Oz also described suspicious behavior during the visit, including vehicles circling the property and individuals photographing the officials, reinforcing federal concerns that the address functioned less as a service hub than as a billing nexus.
The Griggs Midway case has become a focal point in the Trump administration’s broader crackdown on suspected Medicaid fraud in Minnesota. CMS has already withheld payments, launched audits, and demanded documentation from state agencies amid estimates that losses tied to improper billing could reach into the billions since 2018.
Federal officials say the building exemplifies systemic failures in provider enrollment and verification, particularly the practice of approving large numbers of Medicaid providers at a single address without adequate scrutiny of operations or service delivery.
Reaction online was swift. Supporters praised Oz and O’Neill for confronting what they see as entrenched abuse and questioned how state leaders, including Tim Walz and Amy Klobuchar, could have missed such a concentration of billing activity. Critics cautioned that the building has housed legitimate tenants in the past, but federal officials maintain that the billing patterns alone warrant aggressive intervention.
The visit aligns with ongoing federal probes into Minnesota’s Medicaid-funded programs, including housing stabilization and other initiatives already linked to organized fraud schemes. Prosecutors have secured convictions in related cases, and CMS continues to freeze reimbursements it believes are at risk of further abuse.
Oz called the Griggs Midway findings “just a snippet” of a larger problem and pledged continued enforcement. “A person who’s good doesn’t have to always be nice,” he said. “They’ve got to be truthful.”
Minnesota officials have not yet issued a detailed response addressing the specific allegations tied to the Griggs Midway building, as the federal investigation continues.
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I am willing to bet that this Medicaid and Medicare fraud going on in Minneapolis is just a teeny tiny tip of a gigantic iceberg that will be found in every state in the Union. Minneapolis and Ohio have been exposed so far. And in both states it seems the criminals belong to the Somali immigrant community. I also suspect that Rep. Ilhan Omar is going to be found to be the leader of this criminal enterprise in every state that has a Somali immigrant community !!!! $18 billion in Minnesota is “chump change”. This scandal will hit the trillion dollar level very soon. And Omar, Walz, Klobuchar and Ellison still walk around free !!!! All of their passports should be revoked.