Dr. Mehmet Oz, Administrator of the Centers for Medicare & Medicaid Services, has raised alarms about potential hospice fraud networks involving foreign nationals, with Los Angeles identified as a key hotspot. Speaking during a FOX Business special, Oz warned that nearly half of the 2,000 hospices in LA County could be fraudulent, attributing the issue to lax state and local regulations.
"We believe that many of them are created by the Russian mafia. In fact, when you try to bust these folks, sometimes foreign nationals run back to their own country," Oz said.
California Governor Gavin Newsom's office pushed back against Oz's claims, asserting that the state has been actively addressing hospice fraud. Newsom's spokesperson, Izzy Gardon, highlighted a moratorium on new hospice licenses enacted in 2021 and the creation of a multi-agency Hospice Fraud Task Force. Over the past two years, California has revoked more than 280 hospice licenses, with 300 additional providers under investigation.
Broader Fraud Concerns
Oz's allegations extend beyond California. He suggested potential involvement by the Chinese government in Flushing, New York, and the Cuban government in southern Florida. These claims come amid growing scrutiny of taxpayer-funded healthcare programs and their vulnerability to exploitation.
The Trump administration has prioritized combating healthcare fraud, particularly following high-profile cases in states like Minnesota. As investigations continue, the focus remains on safeguarding American taxpayers and ensuring accountability in government-funded healthcare systems.