Dr. Mehmet Oz exposes billions in Medicare hospice fraud stealing from American taxpayers in California, while Governor Gavin Newsom dismisses federal crackdowns as political theater.
Story Snapshot
- CMS Administrator Dr. Oz accuses Los Angeles County of $3.5 billion in suspicious hospice billing, half potentially fraudulent, run by foreign crime networks.
- Federal “Operation Never Say Die” arrests over a dozen in $60 million scheme, targeting sham hospices with impossible 85% patient survival rates.
- Newsom’s office calls Oz’s warnings politically motivated, ignoring ongoing fraud despite state moratorium and 280 license revocations.
- Trump administration vows nationwide audits and revocations to protect seniors and taxpayer dollars from transnational theft.
Federal Crackdown Targets Hospice Fraud Epicenter
Dr. Mehmet Oz, CMS Administrator under President Trump’s second term, warned on Fox Business that Los Angeles County hosts nearly 2,000 hospices billing Medicare $3.5 billion annually. Half appear fraudulent based on impossible patient death rates far below national averages. Oz highlighted Van Nuys, where 42 hospices cram four blocks in multi-tenant buildings, enabling “license flipping” schemes that block real care for owned Medicare numbers. This taxpayer theft demands federal intervention after years of state inaction.
Operation Never Say Die Delivers Arrests
Federal agents executed raids in April 2026, arresting eight and charging over a dozen in a $60 million Medicare fraud scheme dubbed “Operation Never Say Die.” Targets include psychologist Gladwin Gill and nurse Amelou Gill, who billed $5.2 million using their daughter’s name to evade checks. Lolita Minerd ran an Anaheim hospice with 85% patient survival, defying terminal care norms. Nita Palma operated three Glendale sham facilities from prison. DOJ recovered millions while patients received no legitimate services.
Prosecutors detailed kickbacks paying non-terminal seniors $300 monthly plus vitamins to enroll falsely. Medicare paid out over $4 million to the Gills alone. These schemes exploit lax oversight, turning end-of-life care into cash grabs that erode trust in vital programs for America’s vulnerable families.
Newsom Defends Record Amid Persistent Fraud
Governor Gavin Newsom’s spokesperson Izzy Gardon dismissed Oz’s alerts as fodder for “MAGA bloggers and idiots.” The state touts a 2021 moratorium banning new licenses and a task force revoking 280 providers, with 300 more under scrutiny. Yet hundreds of fraudulent operations persist, per federal findings. California AG Rob Bonta labeled it an “epidemic” in 2025, confirming explosive 7-fold growth pre-2021. Newsom claims readiness to partner, but feds see tolerance of waste harming taxpayers.
Oz announced a nationwide moratorium on certain equipment and a full California hospice review by year-end. Arraignments loom with up to 20-year sentences. This federal push under VP Vance’s task force prioritizes American seniors over bureaucratic excuses, aligning with promises to end government waste and protect conservative values of fiscal responsibility.
Sources:
Dr. Oz Warns of Rampant Hospice Fraud in Los Angeles, Tied to Foreign Nationals
Hospice Fraud Spotlight: Mehmet Oz Targets California
DOJ Targets California’s ‘Kingdom of Fraud’ in $60M Hospice Scheme
Los Angeles Hospice Fraud Reaches Billions
Dr. Oz Pledges to Tackle Hospice Fraud
Doctors, Nurses Arrested in SoCal Health Care Fraud Investigation
