"Regulatory Capture" describes conditions where an influencer (usually an industry) "captures" the regulators.  COMBINE is concerned about the closeness of the Medicaid managers to the state's department that regulates Medicaid.   

Here are some resources to learn more about regulatory capture and what to do about it. 

From Emory Law, "Emory Corporate Governance and Accountability Review" : Scott Hempling, "Regulatory Capture": Sources and Solutions, 1 Emory Corp. Governance & Accountability, Rev. 23 (2014). Available at: https://scholarlycommons.law.emory.edu/ecgar/vol1/iss1/4

The Tobin Project (2014), "Preventing regulatory capture : special interest influence and how to limit it,"  edited by Daniel Carpenter, Harvard University, David A. Moss, Harvard University.

Wikipedia : Regulatory Capture