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$1.3 Billion Frozen in Sweeping California Hospice Fraud Crackdown

Posted on Friday, May 15, 2026
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by Angelina Delfin
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62 Comments
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More than $1.3 billion in federal health care reimbursements have been halted, and 800 hospices have been suspended amid a sweeping crackdown on California hospice fraud.

These efforts have been led by Vice President JD Vance and Centers for Medicare & Medicaid Services Administrator, Dr. Mehmet Oz, who President Donald Trump selected to lead the Task Force to Eliminate Fraud.

Dr. Oz cited estimates suggesting roughly one-third of the nation’s hospice providers are based in Los Angeles—even though it only holds about 2.5% of the nation’s elderly population. 

“Ask yourself how that’s possible … it’s not.”

Oz further claimed “at least half” of the hospices in Los Angeles are frauds.

“We believe that at least half of the hospices in the entire area around Los Angeles are fraudulent. … Today we announce 800 of those hospices have been suspended. 800 hospices that last year charged the federal taxpayer $1.4 billion will no longer be paid.” 

The task force effort has not gone without criticism. In January 2026, California Gov. Gavin Newsom called Dr. Oz’s efforts “purely political” and stressed that his team has been dealing with the fraud “for years.”

“Hospice? We’ve been after that for years and years before Oz was even on the scene. This is purely political.”

In 2022, California imposed a moratorium on new hospice licenses after state auditors warned that a lack of oversight allowed questionable hospices into the market. 

According to a report published by Newsom in March 2026, the California Department of Public Health revoked 280 hospice licenses in the past two years. 

Despite Newsom’s efforts, Vance argues that previous enforcement efforts failed to stop billions in fraudulent billing. 

“The Task Force is preventing fraud before taxpayer money leaves the federal government. Agencies will now pay only when they are confident that a payment is legitimate and lawful.”

Vance shared the announcement in a post on X.

The administration says the payment-suspension model used in California could soon expand to other health care programs nationwide as the administration intensifies its anti-fraud efforts.

Angelina Delfin is California correspondent for the Daily Signal.

Reprinted with permission from The Daily Signal by Angelina Delfin.

The opinions expressed by columnists are their own and do not necessarily represent the views of AMAC or AMAC Action.

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Edward
Edward
21 days ago

What about the billons upon billons they have already stolen under Democrats? Who is going to prison? WHO will be held accountable!?!?!

John C
John C
21 days ago

Newsome complains about federal intervention.We can all see what a poor job he has done handeling it.He is an absolute failure as govenor..v

Max
Max
21 days ago

This is just a drop in the bucket. More fraud around the nation needs to be addressed and culprits brought to justice.

anna hubert
anna hubert
21 days ago

The focus should be the activity of those, who enabled and overlooked the fraud deliberately, who is the one releasing money for it, issuing licenses and making possible the theft of taxpayer money, how did they benefit? Any possibility of the responsibility and the consequences?

Edie Faylor
Edie Faylor
21 days ago

If the fraudulent providers are illegals or naturalized foreigners, lets get them deported ASAP and send a democrat with each one.

Karl Hermansen
Karl Hermansen
21 days ago

So Newsome says they’ve been working on this problem for years and years and not only gotten nowhere with it, but it has become substantially worse, and somehow that translates into “purely politics”? I would venture that what it does is shine a big, bright spotlight on Gavin Newsome’s utter incompetence and highlights the corruption in his administration. It’s not “politics”, Gavin, it’s justice.

John Torres
John Torres
21 days ago

Yay. It’s time to get rid of the “frauds” so that those who are legitimate can go about their business of taking care of those in need. I hope it goes beyond California. Go for it and stick with it.

Richard Vogel
Richard Vogel
21 days ago

What needs to be cleaned out is our California Legislative Swamp in addition to FINALLY getting rid of Newsome.Even then,FRAUD will continue because of our useful idiots,who will sleep,and elect more left wing progressives to waste our money.

Thinking
Thinking
21 days ago

If Newsom was so on top of these “hospices” why could they still get 1.4 billions from the govt last year. It takes enforcement and oversight and arresting these criminals. Only the dems don’t believe in that. Like the 11 aliens who have stolen 2 warehouses full. All with stolen goods. Who was looking the other way?. All those who don’t believe in law and order. But when tax money is being used for legitimate programs the dems are up in arms. Until these crooks are voted out things will stay the status quo. Newsom and Tampon Timmy will defend their actions until they fall on their own sword one day. It will happen. It has to if we want to keep America the land of the free and the home of the brave.

Joe
Joe
21 days ago

Freezing funds is fine, but perhaps as much as billions in taxpayer funding will never be recouped, and the perpetrators of this fraud will continue to walk free. Pretty sad.

Charlotte
Charlotte
21 days ago

CA is a good example of what our entire country will become if these criminal Democrat/Communists take over. They want to become another Communist country where the top dog officials rule over the citizens from cradle to grave. They will take most of any money people earn and allow you what they think you need. They will become rich the same way all the Democrat/Communist government are doing in our country. Apparently, many of the citizens of CA are either too stupid to realize what is happening to their state or they are in on the fraud. Like everyone else reading this article, I am wanting to see people arrested and thrown into jail for a long, long time!!! This is one reason why our country is in dire straits financially.

Granny
Granny
21 days ago

FINALLY!!!

rcb
rcb
21 days ago

UHHHHH ONE TURD of the hospice providers are in californication–where 2.5% of the elderly live???? WHY HAS THIS NOT BEEN LOOKED INTO BEFORE????? The fraud and corruption are strong in this state.!!!!!!!!!!

Marilyn McDaniel
Marilyn McDaniel
21 days ago

I hope most of the money is gotten back from these crooks and then to prison for years.

Sam
Sam
21 days ago

Well, I’m shocked. SHOCKED! That theivin’ Dumba$$ocrat$ are at it…AGAIN!

WhatEVER will we do?!

Nothin’. Yup. Nothin’!

gooddog
gooddog
21 days ago

No worries , our country collapsed in 2008 , then we were 8.9 Trillion in dept . Since then our Government has been covering it up with deficit spending and welfare , so they can maintain their opulent lifestyle . We are 40 Trillion in dept and Bankrupt . My suggestion , buy a nice easy chair , sit down put your head between legs and kiss, you know the rest of the story .

samboat
samboat
21 days ago

The most corrupt people on earth, the DemoRATS are already calling the crackdown on fraud racist, white supremacy, a threat to democracy, and Nazism.

Richard
Richard
21 days ago

Certain gov employees benefit from fraud. That is why it has never been stopped. Their excuse is not enough money to track it down. What a joke. The fraud money saved can pay for much more than the employees to drive to each place once a month and check for fraud. It is all BS, but now the real “DOGE” is happening and thankfully. Now put harsh prison sentences on the crooks and see how fast it stops. Send the worse crooks to El Salvador for their prison vacation and see how the new fraud stops in its tracks.

Stephen Russell
Stephen Russell
21 days ago

Maybe apply nationwide??
Probe No CA area

Robert
Robert
21 days ago

About amn time. Now to make it stick,,,heads should be rolling into the jails, and that means most of Commiefornia’s government, especially Newsom and his cohorts including that limp wig Bass!

samboat
samboat
21 days ago

MINIMUM 20-year prison sentence for ALL FRAUDSTERS.
**THAT MEANS ALL DEMORATS WILL BE SERRVING 20-YEAR SENTENCES.

HOORAY, YIPPEE, HOT DANG, MAKE MY DAY, MY WEEK, MY MONTH, MY YEAR, AND MY MILLENNIUM!!

Jo271828
Jo271828
20 days ago

California and any other State or city that claims it is a “sanctuary for illegal aliens” is guilty of insurrection and should have all Federal funds frozen until it renounces its sanctuary policies.

liz
liz
19 days ago

So Newsome has been after fraud in CA for years? Then I say that he has failed at his job!

Robert Mallory
Robert Mallory
20 days ago

Now how can you expect Gavin Newsom to raise enough money to campaign with if there is no action left for him to get a piece of?

Donutdon
Donutdon
20 days ago

hospice fraud……do you ever wonder just what hospice is supposed to be about? We do hospice as friends and loved ones, not some agency with money on their mind. Why do we always seem to take advantage of people when things are a their most critical? Their are plenty of folks who would step up to help, only because they care, not because they are getting a stipend. Once again, the government has encouraged intervention into people’s lives for profit and opened the door to robbery of the most henious kind. Thanks so much…….

Shirley M
Shirley M
20 days ago

It’s about time someone did something about this abuse of our tax dollars. My mom was in a nursing home many years ago as a result I advocated for changes in this industry for better care and oversight on nursing homes and assisted living, to no avail. I spoke to Congress people in my area, state officials but no one really cared and I don’t think realized what was happening. . I finally did achieve getting a video attached to the end of one training video new hires viewed that outlined what happened to my mom and the result. I do believe to this date it’s still being shown. Not sure that it’s helped due to what’s going on now. So thank you after all these years and billions of dollars wasted someone is FINALLY doing something about this issue! Now let’s tackle THE QUALITY OF CARE issue in some of the facilities?????

Roseann Carpenter
Roseann Carpenter
20 days ago

This hospice fraud is beyond horrible, do not have the vocab to rightly classify this crime. In a situation like this, the crooks had to have help; politicians or even citizens who watched it all happen.

Now we need to go into recovery mode. Our law enforcement found thousands of J-6 protesters, now I demand they find the perps of this fraud, and confiscate all their holdings, and the pensions and salaries of any politician who allowed through criminality of greed, or ignorantly allowed this to happen. We want our money back. Jail is too good for this element. Money laundering is still a crime, and I think its easily proven, here.

S. Bolin
S. Bolin
19 days ago

We can see the many failures in California caused by such corrupt leadership. I would NEVER move to California – there are too many taxes.

BEA
BEA
19 days ago

Newsom is so corrupt, money hungry, and a world class liar. What I have seen of his wife, she is awful, too. So California has the gruesome twosome. What a couple. lol !!

Tom
Tom
20 days ago

And 80% of those people are Foreign Nationals/Illegal Aliens!

Chuloe system
Chuloe system
21 days ago

What else is Newsom e going to say? We did a crappy job policing the system.

CLIFF GERACI
CLIFF GERACI
20 days ago

Thank God for common sense,……..a little late, between the BIGGEST spending leader in history, Biden at a resultant debt increase by 8.4 trillion in four years, far and away the most massive debt assemblage of any president and Trump not far behind…..our Debt is getting massive.

Rotorheadhero Green
Rotorheadhero Green
21 days ago

I would bet in the beginning1965 when the first 100 Medicare or Medicare payments were issued, 50% were either fraudulent or shaded at best. Just imagine the growth rate of cheating, lies and abuse since that time, millions upon millions. To try and find, convict or prosecute the guilty would be equal to herding 20 million cats into a giant sack. .

Chulo
Chulo
21 days ago

What else is Newsom going to say? How about we did a crappy job policing the system.

You cant
You cant
21 days ago

Canadian healthcare is better anyway lol

Dan
Dan
21 days ago

More Political Theater BS -:(

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