Trump Administration Closes Hundreds of Fraudulent Health Care Providers
In a recent crackdown, the anti-fraud task force headed by Vice President J.D. Vance announced the closure of numerous hospices and health care providers within a span of just ten weeks. This initiative, prompted by an executive order from the president on March 16, aims to combat health care fraud in collaboration with the Centers for Medicare and Medicaid Services (CMS).
CMS Administrator Dr. Mehmet Oz emphasized the need for strict licensing regulations, remarking, “Remember, fraud like this cannot happen unless California issues these licenses.” This focus came to light as 221 hospice and health care providers in Los Angeles County were suspended just last Thursday.
“In the last 10 weeks, we’ve closed 221 hospices in California,” Dr. Oz stated, pointing out that all affected facilities are based in Los Angeles. He noted a significant acceleration in progress, saying they were able to “dramatically accelerate a process” that had been stagnant for too long.
California is home to around one-third of the nation’s hospices, with approximately 1,800 located in Los Angeles alone. There’s speculation that the government might eventually shut down half of these entities.
A spokesperson for Vance communicated that the administration’s efforts to combat fraud are seeing results, expressing pride in the achieved numbers and optimism for continued progress. The statement highlighted, “The administration’s fight against fraud is bearing fruit as more suspensions occur, bringing fraudsters to justice for preying on hardworking Americans and taking from their taxes and social services.”
Meanwhile, California’s Democratic Governor Gavin Newsom’s office reacted positively to the federal efforts, acknowledging that they have long attempted to address fraud issues. His office stated, “We are pleased that the federal government is finally doing its part,” further mentioning state actions, including the suspension of over 280 licenses and a ban on new licenses beginning in 2022.
In a more critical tone, First Assistant U.S. Attorney Bill Esseri claimed that California has overlooked fraud for over a decade, referring to Newsom as the “fraud king” for presiding over significant losses attributed to fraud in his state. He further suggested that the amount of fraud could escalate to hundreds of billions under Newsom’s administration.
Newsom’s office countered Esseri’s remarks, insisting that the governor has crafted policies, specifically banning new hospice permits last year. They pointed out that the federal government’s delay in accessing health insurance claims hinders the fight against fraud, prompting questions regarding the timeliness of the federal response.
