The Department of Justice is investigating three organ procurement organizations and their parent company over allegations of mismanagement, waste, and abuse in the transplant industry.

The Washington Examiner reported Thursday that federal prosecutors are examining whether DCI Organ Services and its three OPOs breached the False Claims Act. The organizations under scrutiny are Tennessee Donor Services, Sierra Donor Services based in Sacramento, California, and New Mexico Donor Services. Together they cover more than 10 million people.

An email sent in March by Thomas Robulack, the DCI Organ Services general counsel, indicates the group received a civil investigative demand, typically the first step in such an inquiry.

The probe aligns with broader congressional and federal scrutiny of the organ procurement system. Recent investigations have uncovered instances of overbilling Medicare for unallowable costs, including vendor expenses and research that was never performed. Whistleblowers have also raised concerns about patient safety and improper practices at various OPOs nationwide.

Campaigners have welcomed the DOJ action as a necessary step to address long-standing issues in the industry. Molly McCarthy, a three-time kidney transplant recipient, stated that she has alerted oversight bodies for years without results and expressed gratitude that law enforcement is now intervening.

The investigation comes amid ongoing reforms in the transplant sector, including decertifications of underperforming OPOs and efforts to improve accountability for taxpayer-funded operations.