Stunning Hospice Scam – $600 Million Exposed!

Medicare card glasses pen money on wooden table

Vice President JD Vance’s anti-fraud task force has suspended 447 hospices and 23 home health agencies across Los Angeles over suspected fraud totaling more than $600 million, exposing years of unchecked criminal schemes that exploited vulnerable seniors and drained taxpayer dollars meant for end-of-life care.

Story Snapshot

Federal task force suspended 447 hospices and 23 home health agencies in Los Angeles over $600 million in suspected fraud—a 539% increase from 70 providers reported in early April [1]
Department of Justice charged 15 individuals in “Operation Never Say Die” for $60 million Medicare fraud involving sham hospices, kickbacks, and unqualified patient enrollments [5]
One fraudulent hospice submitted $5.2 million in false claims to Medicare, which paid out over $4 million before detection [5]
Medicare and Medicaid fraud in Los Angeles hospice sector estimated at $600 million, with one hospice billing Medicare roughly $29,000 per patient—more than double the national average [1]

Massive Fraud Ring Dismantled in Los Angeles

The Trump administration’s anti-fraud initiative, led by Vice President Vance and Dr. Mehmet Oz, has exposed a staggering criminal operation targeting America’s most vulnerable seniors. The task force suspended 447 hospices and 23 home health agencies in Los Angeles County, representing a dramatic escalation from the 70 providers initially reported in April [1]. This 539% increase reveals the true scope of organized fraud that had flourished unchecked under Democratic governance in California. Criminals exploited Medicare’s per-diem reimbursement model—which pays a flat daily rate regardless of services rendered—to systematically bilk the federal government while providing little to no actual care [1].

Criminal Schemes Targeting the Elderly and Disabled

Federal prosecutors have detailed the criminal tactics used by hospice fraudsters operating across Los Angeles. In “Operation Never Say Die,” the Department of Justice charged 15 individuals linked to a $60 million Medicare fraud conspiracy involving sham hospices and illegal kickbacks [5]. One hospice alone submitted $5.2 million in fraudulent claims, with Medicare actually paying out over $4 million before the scheme was detected [5]. Perpetrators enrolled patients who did not qualify for hospice care—or did so without patients’ knowledge or consent—transferred patients between hospice organizations in exchange for payments, participated in “license flipping” to evade oversight, and offered illegal kickbacks for referrals [1]. These weren’t isolated incidents; they represented a coordinated criminal enterprise designed to exploit the federal healthcare system.

Years of Inaction Under Democratic Leadership

California’s Democratic leadership ignored warnings about hospice fraud for years despite clear evidence of organized criminal activity. A 2022 California State Auditor report warned Governor Newsom that “networks of individual perpetrators in Los Angeles County are engaging in a large and organized effort to defraud the Medicaid and Medicare hospice programs” [1]. The report documented a staggering 1,589% increase in hospice agencies from 2010 to 2021, with 210 active agencies operating within one mile of each other on Van Nuys Boulevard—an obvious red flag of coordinated fraud [1]. State auditors estimated that hospice agencies in Los Angeles County likely overbilled Medicare by $105 million in 2019 alone [1]. Yet under Newsom’s watch, these criminals continued operating, stealing hundreds of millions in federal funds meant for legitimate end-of-life care [1].

#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

Trump Administration Takes Swift Action

The Trump administration moved decisively where California Democrats failed. Dr. Oz, now leading Medicare and Medicaid oversight, pledged to decertify fraudulent hospices and implemented aggressive new protections. The Centers for Medicare and Medicaid Services (CMS) created a checklist of fraud tactics that now triggers mandatory on-site visits by federal investigators [4]. Federal officials are deploying artificial intelligence tools to identify suspicious patterns—including unusually high patient survival rates and repeated doctor certifications across multiple facilities—that indicate sham operations [4]. This represents a fundamental shift from the hands-off approach that allowed criminals to operate freely in Los Angeles for years [4].

Massive Scale of Taxpayer Theft Revealed

The scope of hospice fraud in Los Angeles County is staggering. The Centers for Medicare and Medicaid Services estimates that Los Angeles County alone accounts for roughly $3.5 billion in hospice fraud [1]. Of the roughly 1,800 hospices operating in Los Angeles County, more than 700 have triggered multiple fraud red flags according to state auditors [1]. The 447 suspensions announced by the Vance task force represent just the beginning of accountability [1]. Federal investigators are examining whether accrediting organizations responsible for vetting new hospice providers failed in their duty to identify fraudulent applicants before they gained access to Medicare funds [1]. These systemic failures enabled criminals to establish shell companies, enroll fake patients, and bill the government for services never rendered [1].