NEWSOM KNEW! Massive LA Hospice Fraud EXPOSED

Medical documents with the word 'Medicaid' prominently displayed alongside a stethoscope and medication

Federal investigators say at least half of all hospices in the Los Angeles area are fraudulent — and the Trump administration is now shutting them down by the hundreds while demanding accountability for over $600 million stolen from dying Americans.

Story Highlights

A federal anti-fraud task force led by Vice President JD Vance suspended 447 hospices and 23 home health agencies in the Los Angeles area over an estimated $600 million in suspected Medicare fraud.
The Department of Justice charged 15 individuals in “Operation Never Say Die” tied to a $60 million Medicare fraud scheme involving sham hospices, illegal kickbacks, and patients enrolled without their knowledge.
Dr. Mehmet Oz, heading the Centers for Medicare and Medicaid Services, pledged to decertify fraudulent providers and announced a freeze on new hospice and home health licenses nationwide.
California’s own state auditor warned Governor Newsom in 2022 about rampant Los Angeles hospice fraud — but the problem exploded on his watch before the federal government stepped in.

Half of LA’s Hospices Suspected of Defrauding Dying Patients

Dr. Mehmet Oz, administrator of the Centers for Medicare and Medicaid Services (CMS), delivered a stark assessment: at least half of all hospices in the Los Angeles area are fraudulent, and one in three hospices in the entire United States is located in Los Angeles alone. [4] These aren’t abstract statistics — they represent a massive criminal enterprise billing the federal government for end-of-life care that was never legitimately provided, often to patients who didn’t even know they were enrolled. [2]

The anti-fraud task force led by Vice President JD Vance suspended 447 hospices and 23 home health agencies in the Los Angeles area, representing a 539% increase from the 70 providers suspended just weeks earlier. [1] Fraudulent tactics documented by investigators include enrolling patients who did not qualify for hospice care, transferring patients between hospice organizations in exchange for payments, participating in “license flipping” schemes, and offering illegal kickbacks for patient referrals. [2] Not one of the approximately 450 delisted hospices filed an appeal or complaint following removal, according to Dr. Oz. [4]

#NEW: @VP Vance on rampant hospice fraud in the U.S….

“We see a lot of fraud in the home health care and in the hospice care system. I think Doctor Oz will probably talk a little bit more about that. But again, you have to appreciate that this fraud issue is fundamentally… pic.twitter.com/h1bd7TACZ2

— Curtis Houck (@CurtisHouck) May 13, 2026

Federal Prosecutors Strike with “Operation Never Say Die”

The Department of Justice (DOJ) charged 15 individuals under “Operation Never Say Die,” targeting a $60 million Medicare fraud scheme built on sham hospices operating across Los Angeles. [5] Prosecutors detailed one hospice that submitted over $5.2 million in fraudulent Medicare claims, of which Medicare actually paid out more than $4 million before investigators intervened. [5] One defendant allegedly operated three fraudulent hospices while incarcerated in federal prison and free on bond for prior fraud charges — a level of brazenness that illustrates how deeply entrenched this criminal network had become. [9]

CMS is deploying artificial intelligence tools to identify suspicious patterns among providers, including unusually high patient survival rates and repeated physician certifications of terminal illness across multiple facilities. [4] Dr. Oz confirmed that CMS created a checklist of fraud tactics, and any provider triggering those red flags will receive an on-site visit from the agency. [4] A nationwide freeze on new hospice and home health care licenses has also been announced to prevent fraudsters from simply opening new operations after being shut down.

Newsom Knew — and Did Nothing Meaningful

California’s own state auditor sent Governor Gavin Newsom an 87-page report in 2022 warning that networks of individual perpetrators in Los Angeles County were engaged in a large and organized effort to defraud Medicare and Medicaid hospice programs. The report documented a staggering 1,589% increase in hospice agencies in the county between 2010 and 2021, including 210 active agencies within a single mile on Van Nuys Boulevard — a concentration that defied any legitimate medical need. Despite that warning, the fraud metastasized for years before federal action.

California officials claim the state launched its own Hospice Fraud Task Force and revoked approximately 280 licenses. [4] But with 447 providers now suspended by federal investigators and over $600 million in suspected fraud identified, the state’s prior efforts clearly fell far short. [1] Taxpayers across the country funded this scheme through Medicare and Medicaid — programs meant to care for the elderly and dying, not enrich criminal networks. The Trump administration’s aggressive crackdown is delivering accountability that California’s leadership failed to provide, protecting both vulnerable patients and the American taxpayer.