Vice President JD Vance's White House Task Force to Eliminate Fraud used an artificial intelligence detection system to identify and suspend 70 high-risk hospice and home health providers in Los Angeles. The Centers for Medicare & Medicaid Services, led by Administrator Dr. Mehmet Oz, halted their funding within one week of the AI flagging suspicious activity.

The providers were targeted for potential Medicaid fraud in hospice and home health services, part of a broader crackdown on waste and abuse in federal programs. The task force, established by President Donald Trump in March, employs AI to analyze claims data and block fraudulent payments rapidly, replacing slower manual processes. A source familiar with the effort said the number of suspended providers is expected to grow exponentially as the initiative expands nationwide.

By early April, suspensions in Los Angeles reached 221, a more than 215% increase from the initial 70, according to task force updates. Federal authorities linked some cases to schemes involving fake patients and empty facilities billing millions for unprovided care. In 'Operation Never Say Die,' eight people were arrested in Southern California for alleged Medicare and Medicaid hospice fraud totaling over $50 million. Prosecutors charged 15 defendants with operating phantom clinics, paying kickbacks to recruit healthy patients falsely certified as terminally ill, and using proceeds for luxury purchases.

Examples include an Artesia hospice that billed nearly $9 million from 2020 to 2025 and facilities in Glendale and Anaheim that submitted millions despite prior bans or absent doctors. The U.S. Attorney's Office in Los Angeles, FBI, and the task force coordinated the raids and seizures.

Vance highlighted California's fraud issues during a March event, stating, "We know there's a lot of fraud in California, and we're trying to get to the bottom of exactly what it looks like." A Vance spokesperson added, "The American people deserve better than being ripped off by people who hate this country." Dr. Oz noted the task force's rapid progress, saying, "In 10 weeks we’re getting close to what Governor Newsom did in four years."

California Governor Gavin Newsom disputed the scale, claiming his administration blocked $125 billion in fraudulent activity. His office argued the programs are federally administered. First Assistant U.S. Attorney Bill Essayli announced the arrests, emphasizing a zero-tolerance policy.

The effort builds on prior actions, such as withholding $259.5 million in Minnesota Medicaid funds. Officials anticipate more suspensions and prosecutions as AI tools deploy further.