The federal government is using ChatGPT through a program called AERO, the Audit Enforcement and Risk Oversight initiative, to scan five years of compliance records for every hospital, nonprofit, university, and state Medicaid agency that receives federal health dollars, and it has not disclosed how often the tool gets it wrong. The Department of Health and Human Services launched AERO on May 21, 2026, without a public solicitation, a published validation study, or specifying when enforcement will begin. Organizations flagged can lose federal funding entirely through payment holds or permanent debarment. A study published in Nature in April 2026 established that hallucination is statistically inevitable in pretrained models for non-learnable facts. ECRI named ChatGPT misuse as the single greatest health technology hazard of 2026, noting general-purpose tools "are not regulated as medical devices and have not been validated for healthcare purposes." Under OMB Memorandum M-25-21, federal agencies deploying "High Impact AI" must report minimum risk management practices to the White House Office of Management and Budget by September 22, 2026, and any non-compliant use case must be discontinued. HHS has not publicly disclosed whether AERO has been assessed under that framework.