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The only thing lawmakers will care about is the Medicaid fraud. I wouldn’t be surprised if someone enterprising used this as a reason Medicaid is bad.
A few years back there was a scandal where a whole chain of mental health facilities was doing this. They would buy local mental hospitals, not change the name of disclose that they’d been bought, and start committing everyone, no matter what, for exactly as long as their insurance would cover, then kicking them to the streets.
Took me a bit to dig up the story – it was these guys: