Overview
- CMS, led by Dr. Mehmet Oz, sent Gov. Gavin Newsom a letter requiring a comprehensive program integrity action plan with an initial response due within 21 days.
- Oz has publicly alleged large-scale fraud tied to organized criminal networks, citing a sevenfold rise in hospice enrollment, 42 hospices within four blocks in Van Nuys, and as much as $3.5 billion in losses in Los Angeles County.
- California officials dispute the framing, noting a 2021 law halting new hospice licenses and more than 280 license revocations as prior actions to curb abuse.
- Newsom’s office says it is examining reports that Oz’s LA tour video unfairly targeted Armenian-owned businesses, as a Van Nuys bakery owner reported a drop in customers after being shown in the clip.
- Despite the heightened rhetoric, outlets report no newly disclosed prosecutions tied to the latest claims, though federal agencies continue probing the alleged schemes.