SALEM, Ore. – An Oregon legislator is calling for state and federal investigations into alleged Medicaid fraud and oversight failures at a Lake Oswego addiction treatment center that he says is linked to serious crime, including an attempted murder case.
Rep. Diehl Raises Concerns
On Tuesday, Rep. Ed Diehl, R-Stayton, urged the Oregon Department of Justice’s Medicaid Fraud Unit and the U.S. Department of Health and Human Services’ Office of Inspector General to open inquiries into Uplifting Journey, LLC, a treatment provider founded in 2023.
Diehl’s call follows reporting from Oregon Roundup, a Substack site run by Oregon writer Jeff Eager, which detailed the company’s large Medicaid payouts and troubling record. According to the report, Uplifting Journey received more than $2.3 million in Medicaid reimbursements between April 2024 and March 2025—despite operating what critics described as a poorly supervised halfway house.
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Allegations of Crime and Oversight Failures
Eager’s reporting indicated that the Lake Oswego halfway house managed by Uplifting Journey became a hub of police activity, with officers responding to the property 17 times between 2024 and 2025.
More alarmingly, the site was linked to a violent crime in Washington. In February 2025, Seattle prosecutors charged 24-year-old Kevin Daniel Sanabria Ojeda with kidnapping, robbery, and attempted murder. Court documents suggest Ojeda had lived at, or was present at, the halfway house before the alleged crimes.
Three days after Ojeda’s arrest, Uplifting Journey’s Medicaid reimbursements were halted.
Diehl said the case points to glaring problems in Oregon’s Medicaid oversight. “This is exactly why we need a top-to-bottom review of how taxpayer dollars are being spent, and whether vulnerable Oregonians are being put at risk,” he said.
How Medicaid Payments Work
Under Oregon’s system, most Medicaid funds do not flow directly from the Oregon Health Authority (OHA) to service providers. Instead, reimbursements are authorized through coordinated care organizations (CCOs) such as Health Share of Oregon and Trillium Community Health Plan, which oversee local service delivery in areas including Lake Oswego.
Critics argue that this layered structure leaves room for inadequate oversight, particularly for newer or smaller providers. Uplifting Journey was established just two years ago yet received more than $2.3 million in reimbursements in under 12 months.
Lawmaker’s Demands
Rep. Diehl is calling for:
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A formal investigation into Uplifting Journey for potential Medicaid fraud.
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A full audit of Oregon’s oversight process for addiction recovery providers.
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Efforts to recover any misspent funds and ensure accountability.
He emphasized that Oregonians deserve both fiscal responsibility and safe, well-managed recovery services. “This is about protecting patients and protecting taxpayers,” Diehl said.
No Immediate Response From Agencies
As of Tuesday, neither the Oregon Health Authority nor the DOJ’s Medicaid Fraud Unit had responded publicly to the allegations or to Diehl’s request for investigations.
The situation has already attracted national attention due to the violent crimes allegedly tied to one of the halfway house’s residents. Observers say the case could test both Oregon’s Medicaid oversight framework and the safeguards meant to prevent fraud or misuse of federal funds.
Broader Implications
The controversy comes amid heightened scrutiny of Oregon’s Medicaid system, which serves 1.4 million low-income residents and people with disabilities. With rising costs and ongoing political debates about accountability, the Uplifting Journey case may become a flashpoint for reform.
For now, Diehl and others are demanding answers to how such a young organization received millions in taxpayer dollars while allegedly failing to provide safe, effective care.
