u/Resurgum12

I work for a company which is entirely Medicaid funded where the owner takes what I consider to be a high salary and frequent draws for items and services which seem to be loosely related to company expenses at best. The owner also purchased a house with company money to then rent to live in. In my limited understanding of S Corps, there does seem to be flexibility in the draws an owner takes in addition to their salary. But what I can’t reconcile is the use of Medicaid funds which seem highly regulated. Can anyone help me understand how Medicaid funds should be used within an S Corp?