I don't know enough about the Maxim case, covered by Andrea Walker in today's paper, to have an opinion on whether it should have been debarred from the Medicaid program. I do know that time after time after time, defense and health-care contractors cheat the government and reap only mild consequences.

Check out the Project on Government Oversight's Contractor Misconduct Database. Lockheed Martin is at the top of the list, although a quick glance seems to show that most of the violations are relatively minor. Even so, at many companies serious fraud takes place and still the companies are allowed to continue doing business with the government. I quote FraudBlawg:

There have been zero debarment actions in the past fifteen years against the government’s largest (top 100) suppliers of goods and services, despite hundreds of billions of taxpayer dollars lost to fraud. In fact, many of the worst offenders continue to receive taxpayer money and continue to be awarded the largest government contracts.