Overview
- CMS Administrator Dr. Mehmet Oz posted a Jan. 27 video from Van Nuys alleging Los Angeles is an epicenter of hospice and home‑health fraud, claiming roughly $3.5 billion in improper billing and citing 42 hospices in a four‑block area tied to a “Russian Armenian mafia.”
- Gov. Gavin Newsom’s complaint to HHS argues Oz’s statements were baseless and racially charged, contending they target Armenian Americans and risk discouraging participation in federally funded care programs.
- California officials countered with their enforcement record, noting a statewide moratorium on new hospice licenses through 2027, more than 280 license revocations, and actions by the attorney general including 109 criminal charges and 24 civil cases.
- A bakery shown in the video reported about a 30% drop in business after the footage circulated, and news outlets report CMS has not publicly provided detailed evidence substantiating the specific $3.5 billion and 42‑hospice claims.
- CMS and HHS have demanded a comprehensive California program‑integrity plan within three weeks, federal probes are ongoing, and Oz has pushed back on Newsom’s criticism as a House Republican fraud‑oversight hearing looms on Feb. 3.