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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 systematic failures within the state. it is true that many of the problems came to light through investigative reporting. reporter: 64 criminal 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? this past july cnn and the center for investigative reporting exposed widespread fraud in the nation s largest medicaid system. we found that in the last two years half the nearly 186 million dollar spent on drug medi-cal, about $94 million, went to clinics that have shown ....
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? ....
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 acting. the system didn t work well, it was a fractured system. there were systematic failures within the state. it is true that many of the problems came to light through investigative reporting. reporter: 64 criminal cases are being investigated through the state s department of justice. 174 clinic sites have been suspended including every one exposed in our series. did he call back and say he s not coming? this past july, cnn exposed widespread fraud in the nation s largest medicaid system. we found that in the last two ....
Unacceptable. and i m here 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 systematic failures within the state. it is true that many of the problems came to light through investigative reporting. reporter: 64 criminal cases are being investigated through the state s department 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? reporter: this past july, cnn and the center for investigative reporting exposed widespread fraud in the nation s largest medicaid system. we found that in the last two years, half the nearly $186 ....