Yes, and being put on the LEIE list (aka the HHS exclusionary list) makes you unemployable for most chains as anywhere you would work would disqualify that store or hospital from accepting government insurance (either Medicaid, Medicare, or FEHB). For AZ for any clinical license, it's a suspension/revocation on moral turpitude grounds automatically to be placed on that list.
So no, having some internal knowledge of the circumstances, I can assure you that the LEIE placement was not unjust, and their actions directly and unequivocally screwed over a bunch of Medicaid recipients through lost in transition. That's actually not necessarily what got them the career death penalty, you just get fired for that at worst. They got it, because they falsified a bunch of the documentation and signups, and they did the additional imbecility of lying to the IG investigators (kind of like your State Board, except the ones that showed up actually had ranks like "Special Agent in Charge" and had police authority) which was why they got cooked. What happened to BAH? Big fine, no big deal. They blamed their employees for violating their ethical commitments and hung them out to dry. But, like falsifying control substance inventories, falsifying insurance data are easy grounds for license discipline simply because the politics are so straightforward. For BAH, it's another day in the business.
To the OP, BAH as a company has always been at the edge of ethical behavior (not like what we complain about in Walgreens or CVS, while they're hard on their workers, they are really well-known to not have fraud or scam issues with their business partners). They are usually hired in circumstances where no civil servant would actually do the work as there would be a moral or ethical opposition to it. Think about it as you apply. If you're the next hot piece of ass at a donkey barbecue though, BAH and the civil service won't miss you. If the company is a real screwup (like CSC, CACI, or RGI), they'll rename themselves and sell their performing assets to a shell corporation leaving the rest to die in the bankruptcy. Standard government-private business operating procedure for the questionable work.