Salud Para La Gente (Santa Cruz/Monterey FQHC) Pays $750K to Settle False Claims Act Misbranded Contraceptives Case — First CA FQHC FCA Settlement of FY2026

On May 6, 2026, Salud Para La Gente — a Santa Cruz/Monterey County FQHC serving low-income patients across the Central Coast — agreed to pay $750,000 to settle False Claims Act allegations that it billed Medi-Cal and Medicaid for misbranded contraceptives. This is the FIRST California FQHC FCA settlement of FY2026 to surface, and it arrives during peak DOJ enforcement posture (NFED stood up April 7, West Coast Strike Force April 30, FY2025 healthcare = 84% of $6.8B FCA recoveries). Even mission-driven safety-net FQHCs are not exempt from FCA scrutiny — particularly around 340B/family planning drug supply chains, FDA labeling verification, and Medicaid billing alignment. Compliance officers across CA FQHCs should immediately: (1) audit contraceptive and 340B drug procurement chains for FDA-approved labeling, (2) verify Medi-Cal billing reflects the actual product dispensed, (3) document GPO/wholesaler verification procedures, (4) review the DOJ-OIG release language for additional indicators. Pairs with the May 7 Section 504 extension as a one-two signal: OCR pulled back on accessibility enforcement, but DOJ/OIG enforcement on billing integrity is intensifying.