JD Vance’s Fraud Task Force Catches Hundreds Of Fake ‘Hospices’ Red-Handed

The federal anti-fraud task force led by Vice President JD Vance has moved to suspend 447 hospices and 23 home health agencies operating in Los Angeles due to suspected fraud involving more than $600 million in federal healthcare program payments.

The suspensions pause Medicare and Medicaid payments to the affected providers while further reviews and investigations proceed. Los Angeles County has previously been identified by federal and state authorities as a significant area for hospice-related fraud concerns, with a high concentration of providers relative to the national average.

A thorough analysis from CBS News, which included several figures provided by the Department of Health and Human Services, found that upwards of one-third of hospice facilities in Los Angeles demonstrate typical signs of fraudulent activity.

Nearly 500 hospices are concentrated within a 3-mile radius, the densest in the county, with 137 along Van Nuys Boulevard alone. Over half of these businesses displayed red flags indicating fraud when scrutinized.

“Large clusters of providers in one location suggest that the supply of providers may exceed the patient needs in that location. The providers may actually be billing for services to patients not located in the area or who are not eligible for hospice services,” state auditors noted in a 2022 report.

Billing patterns further highlight issues. The average LA County hospice bills Medicare $29,000 per patient, double the national average of $13,200, with some reaching $74,000. Seven hospices reported zero patients in 2024 but still billed Medicare.

Federal estimates suggest LA County’s hospice fraud totals $3.5 billion annually.

The task force’s latest figures reflect a 539 percent increase from the 70 suspensions reported at the beginning of this month.

Earlier in the month, the task force had announced the suspension of 221 providers in the region. The cumulative actions align with the task force’s mandate, established under the Trump administration, to identify and address waste, fraud, and abuse in federal entitlement programs.

No individual names of the suspended hospices or home health agencies have been publicly released in connection with the latest announcement. The focus remains on aggregate billing data and risk indicators rather than case-by-case disclosures at this stage, according to a report from Fox News.

“Where there is fraud, the task force will find it. We will not stop until every hard-earned taxpayer dollar goes toward the honest Americans who deserve them,” a spokesperson for Vice President Vance’s office announced in a statement.

The task force has indicated that it will continue reviewing leads and data nationwide, with expectations that both the number of suspensions and the associated dollar amounts will rise. Suspended providers will undergo additional CMS review processes, which may result in further enforcement actions, including potential recoupment of improper payments, revocation of billing privileges, or referrals for criminal investigation by the Department of Justice.

Providers have the opportunity to submit evidence or appeals during the review period, though payments remain paused pending resolution.

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