Dr. Mehmet Oz is sounding the alarm on what he calls a massive hospice fraud scheme draining billions from U.S. healthcare programs. The alleged scams involve fake clinics, ghost patients, and organized crime networks operating largely in California. As the Trump administration tightens enforcement, political backlash is intensifying.
Dr. Oz says fake hospices tied to foreign crime rings stole billions from Medicare, centered in LA and spreading nationwide. Newsom pushes back with a civil rights complaint as Trump’s team ramps up fraud crackdowns. #Fraud #FollowTheMoney pic.twitter.com/Prg4JLmh2X
— Matthew Brady (@mattbrady775) February 7, 2026
- Dr. Mehmet Oz, head of Centers for Medicare and Medicaid Services, says billions are being stolen through large-scale hospice fraud.
- Fraud networks allegedly involve foreign criminal organizations running fake hospices, primarily in Los Angeles, billing Medicare/Medicaid for nonexistent patients.
- Oz claims fraud has spread from California into Nevada, exploiting weak oversight and sanctuary-style policies.
- Gavin Newsom filed a civil rights complaint against Oz, accusing him of racially charged and misleading claims.
- Oz highlighted Minnesota autism care spending jumping from $3M (2018) to $400M (2024), a 13,233% increase, raising fraud concerns.
- Investigations cite “ghost patients,” sham companies, and light sentences for convicted fraudsters.
- Public figures, including Jillian Michaels, amplified calls for tighter safeguards.
- The Trump administration says it is cracking down to reclaim funds for legitimate patient care.
