Planned Parenthood’s fraud that Texas is pulling funds for political reasons

This week, the state of Texas informed Planned Parenthood of its plan to remove its affiliates from the state’s Medicaid program. The announcement came after revelations that Planned Parenthood and specifically their Houston affiliate, Planned Parenthood Gulf Coast ( PPGC) is involved in a baby harvesting operation which has caused the nation to recoil in horror.

Planned Parenthood Houston  abortion mega

Investigators from the Center for Medical Progress, posing as buyers for a Biotech company captured under cover conversations with the Director of Research for Planned Parenthood Gulf Coast, Melissa Farrell. Farrell was recorded offering intact fetal cadavers for research as a “matter of line items.”


In addition to mentioning the CMP video, the letter obtained by Live Action News from Texas Health and Human Services Commission’s inspector general, Stuart Bowen, tells Planned Parenthood Gulf Coast that his office had information suggesting that, “fraud and other related program violations have been committed by a number of Planned Parenthood affiliates enrolled in the Medicaid program in Texas, including you.”

Planned Parenthood clinics in Texas received $3.05 million in federal funds through Medicaid for family planning services last year, according to a report in the Texas Tribune.

The letter also states that the Planned Parenthood Gulf Coast is “liable directly, or by affiliation for a series of serious Medicaid program violations,” and that Planned Parenthood affiliates in the state are, “no longer capable of performing medical services in a professionally competent, safe, legal and ethical manner.”

The letter details cases where Planned Parenthood’s credibility as a Medicaid provider for the state was called into question:

    “In Reynolds, a Planned Parenthood Whistleblower alleged sufficient evidence of fraud to assure the federal court handling the matter that the case was worth pursuing, after which Planned Parenthood promptly settled the lawsuit for $4.3 million. Furthermore, when the United States Department of Justice (DOJ) announced the 2013 settlement in Reynolds, it openly and compellingly criticized PPGC for “abuse of programs that are extremely important to the well-being of many American women.” Further, the DOJ was “particularly grateful to the Whistleblower” who came forward for revealing that Planned Parenthood Gulf Coast had billed the Texas Medicaid program, Title XX, and the Women’s Health Program “for items and services that were either medically unnecessary or were never actually provided.”

In the 2013 case mentioned in the letter, the state had accused Planned Parenthood of submitting more than $30 million in fraudulent bills between 2003 and 2009.

In addition to the Reynolds case, in 2014, another whistle-blower case alleged that PPCG defrauded Medicaid with regard to blood tests performed on Texas teens. The case was brought by Patricia Carroll who served for several years as the accounts receivable manager for Planned Parenthood Gulf Coast. The complaint stated that Carroll noticed “a large revenue increase” of 314.76% for a Planned Parenthood clinic in Huntsville while preparing the monthly projection report.

Patricia Carroll

Rather than looking at the hard cold facts that the citizens of Texas should not be forking over hard earned tax monies to an organization embroiled in so many accusations of fraud, the media is attempting to paint Planned Parenthood as some sort of a victim. And, although there are thousands of options for women’s healthcare in the state of Texas, other than Planned Parenthood, PPGC spokeswoman Rochelle Tafolla called the move by Texas “politically motivated.”

Planned Parenthood Medicaid revoked Texas

But, while the media publishes Planned Parenthood’s faux outrage the organization’s mother ship in the state, PPCG is hardly lacking financially. According to Planned Parenthood Gulf Coast’s most recent 990 report the Houston abortion business netted over $43 million dollars in assets by the end of 2013. In addition, 10 out of 11 officers or staff listed on the Planned Parenthood report made a hefty six digit salary.

PPGC 2013 990

PPCG interest 2013 990

PPGC’s statement of revenue shows $8,941,664 in total revenue that year which included $920,368 in government grants and $7,577,972 in contributions, gifts, and other grants. And, between 2009 and 2013, PPGC reported receiving $30,830,0483 in gifts, grants or contributions earning a whopping $3,603,781 in interest, dividends, and other investment income. In other words, Planned Parenthood Gulf Coast alone potentially earns as much revenue in interest as the amount the state of Texas is pulling through the state Medicaid program. So, when Planned Parenthood claims that women will be hurt by the mere $3 million state dollars the taxpayers will no longer have to pay through Medicaid, they are misleading the public.

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