Gavin Bell and Lyndsay Medlin Quoted in Part B News, Warn Organizations to Review DEI Practices

Bradley attorneys Gavin Bell and Lyndsay Medlin were quoted in Part B News on the Justice Department’s apparent plans to use the False Claims Act (FCA) to investigate what the Trump administration calls “illegal DEI” practices in the private sector.

A recent article by Bell and Medlin, “DOJ Is Ramping Up FCA Investigations of DEI Practices in the Private Sector,” is a review of U.S. Department of Justice activities in relation to what President Trump calls, e.g. in Executive Order 14731, “illegal DEI.” Their article noted that while until recently “the government’s DEI enforcement actions were civil rights actions — not FCA cases — focused almost exclusively on educational institutions and state and local governments,” a Dec. 28, 2025, Wall Street Journal report says the DOJ is planning to use FCA to come after enforcement targets that “include ‘industries ranging from automotive and pharmaceuti­cals to defense and utilities.’”

“Any company who receives federal funds subject to these certifications has potential exposure if the government believes it still considers diversity when hiring,” Bell and Medlin added. And that doesn’t exclude physician practices.

“Absolutely, the health care space is a likely target,” the authors told Part B News, “even more so than the private companies currently under investiga­tion. Providers and health care systems submit claims to the federal government on a daily basis, which already contain certifications conditioning receipt of Medicare money on compliance with certain laws/ requirements.”

Trump’s EO “directed all federal agencies to include terms in contracts and grant awards requiring the recipient to certify that it does not operate pro­grams promoting DEI,” Bell and Medlin said. “Thus, if a health care entity has direct contracts with or grants from the federal government, it may have already made a certification that could lay the foundation for a DEI FCA investigation." 

This case differs, however, from the kind the DOJ might approach as a DEI/FCA case, Bell and Medlin explained. “The direct division of people based on a protected class is the issue, and [BCHD’s] actions here seem to have been criticized regardless of where community members fell on the political spectrum.”

“The investigations under the FCA, on the other hand,” Bell and Medlin said, “target a wider range of practices, initiatives that many companies have been promoted and engaged in for years.”

The DOJ is reportedly preparing to apply the FCA to industries that receive federal funds, potentially including healthcare providers. They noted a major shift: “The government’s DEI enforcement actions were civil rights actions — not FCA cases — focused almost exclusively on educational institutions and state and local governments.”

Bell and Medlin warned that the healthcare sector may be especially vulnerable because providers submit claims to the federal government daily. “Absolutely, the health care space is a likely target… even more so than the private companies currently under investiga­tion.”

If a provider has DEI initiatives, the government interprets them as unlawful discrimination, and the provider has certified compliance with federal requirements, that could create potential FCA exposure. “Any company who receives federal funds subject to these certifications has potential exposure if the government believes it still considers diversity when hiring,” they said.

The full article, “FCA Investigations Based on DEI Coming; Check Language, Compliance,” was published on Part B News on March 2, 2026. (login required)