confirmed the fraud has been out of control, and apologized. >> what we are uncovering in terms of the fraud and the other issues with the drug medi-cal program is completely unacceptable and i'm hour to tell you that we are sorry. >> reporter: while legislators grilled douglas on why it took a news report to get the agency to act, the state has confirmed it is, in fact, now acting. >> the system didn't work well, that it was a fractured system, that there was a systematic failures within the state. it is true that many of the problems came to light through investigative reporting. >> reporter: 64 cases are being investigated through the state's didn't of justice. 174 clinic sites have also been suspended including every single clinic exposed in our rehab racket series. sir -- wait a minute now. did he call back and say he's not coming?