Senator Dahms calls out fraud, mismanagement in state human services agency

Last week, the Minnesota Senate held a joint oversight hearing to investigate allegations of fraud and mismanagement within the state’s Department of Human Services (DHS). The department, which is the state’s largest agency, has been under intense scrutiny after a series of media reports alleging a culture of distrust and retaliation within the agency’s top leadership, along with allegations of mismanagement that had led to potentially-fraudulent behavior.

“This is the state’s largest agency and is responsible for tens of billions of taxpayer every year. Minnesotans deserve an agency that is accountable and transparent,” said Senator Gary Dahms (R-Redwood Falls). “The reports coming from the department are unacceptable. The taxpayers of the state of Minnesota deserve answers as to what is happening, why it is happening, and how it can be prevented from happening again.”

The hearing came as news broke regarding $25 million in overpayments  to tribal nations in Minnesota for Medicaid services, as well as an ongoing investigation regarding the state’s child care assistance program (CCAP).  

Former and current DHS employees testified about a pervasive negative work environment within the agency, which has approximately 7,000 employees across the state. The state’s nonpartisan legislative auditor, Jim Nobles, also testified that “…because [of] its size, complexity, and importance, DHS consumes more of our attention and our resources than any other state agency.” Dr. Jeff Schiff, former Medical Director for DHS, told the committee there is “unconscionable arrogance” from a small group of administrators with an inordinate amount of control and medical advice was willfully ignored.

“It is critical we enact substantive, meaningful change from top to bottom,” continued Senator Dahms. “This agency touches thousands of Minnesotans every day – and they expect their state government to work for them.”

Senator Gary Dahms, of Redwood Falls, represents communities in Brown, Lac qui Parle, Lyon, Redwood, Renville, and Yellow Medicine counties in the Minnesota Senate. He serves as chair of the Commerce and Consumer Protection Finance and Policy Committee and is an assistant majority leader.