A federal task force led by Vice President JD Vance has shut down 221 hospices and health care providers in California as part of a broader effort to combat fraud in the industry.
The Task Force to Eliminate Fraud, created by executive order on March 16, has been working with the Centers for Medicare & Medicaid Services to investigate and suspend providers suspected of abusing the system. Officials say the actions have largely focused on Los Angeles County, where a significant concentration of hospice providers operates.
Centers for Medicare & Medicaid Services Administrator Dr. Mehmet Oz said the suspensions were carried out over 10 weeks, describing the effort as an acceleration of enforcement actions that had previously moved more slowly. He noted that Los Angeles County is home to roughly 1,800 hospices, about one-third of the national total, and said officials expect additional closures as investigations continue.
Administration officials argue the crackdown is necessary to protect taxpayer dollars and ensure integrity in federally funded health care programs. A spokesperson for the task force said the initiative is aimed at holding providers accountable for fraudulent practices and preventing further abuse of Medicare resources.
The effort has also highlighted tensions between federal and state officials. Representatives for California Gov. Gavin Newsom said the state has already taken steps to address the issue, including suspending hundreds of licenses and implementing a ban on new hospice licenses in 2022.
Federal prosecutors, however, have criticized the state’s oversight, arguing that regulatory failures allowed fraudulent providers to proliferate. First Assistant U.S. Attorney Bill Essayli said the scale of the issue reflects years of insufficient enforcement at the state level.
State officials pushed back, noting that Medicare billing data, a key component in identifying fraud, is controlled by the federal government, and questioning why stronger federal action had not occurred sooner.
The crackdown marks one of the most aggressive recent federal efforts targeting health care fraud, with officials indicating that additional enforcement actions are expected as the task force continues its work.
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