EXCLUSIVE: #Trump admin has shut down 470+ fraudulent hospice centers in Minnesota and Los Angeles; $6.16bn fraud identified, $1.1bn recovered
Full Article: @TTANews
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EXCLUSIVE: #Trump admin has shut down 470+ fraudulent hospice centers in Minnesota and Los Angeles; $6.16bn fraud identified, $1.1bn recovered
Full Article: @TTANews
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(TTA NEWS) The Trump administration intensifies its assault on healthcare fraud, shutting down more than 470+ fraudulent hospice and home health providers across Los Angeles and Minnesota identifying $6.6 billion in suspect claims and recovering roughly $1.1 billion. These actions form part of a broader Department of Government Efficiency (DOGE) efficiency drive.
The White House established a new anti-fraud task force in March led by Vice President JD Vance that includes the participation of the Centers for Medicare & Medicaid Services and 10 federal agencies, including the Departments of Justice, Health and Human Services, Homeland Security and Labor, among others.
Through roughly 16 months, this second Trump administration has targeted entrenched networks of improper billing. In Los Angeles, authorities suspended operations at 447 hospices and 23 home health agencies, freezing more than $600 million in suspected fraudulent claims. Phantom facilities in vacant offices, strip malls, and shared addresses billed Medicare for care never delivered, using recycled (in some cases stolen) identities and shell companies. The Task Forces' “stop and clot” model halts payments in real time, preventing further losses.
The Department of Justice treats these as organized financial crimes. One California network unraveled into a $267 million scheme, with assets seized including cash, vehicles, and cryptocurrency.
In Minnesota, over $350 million in Medicaid payments were frozen amid systemic weaknesses. Federal probes exposed networks disproportionately involving immigrants, Somali-American and Muslim operators in childcare, autism services, and related programs are so far the biggest perpetrators. Over 100 individuals—about 85 of Somali, Muslim descent—have been charged, with dozens convicted in schemes including the $250 million Feeding Our Future scandal featuring falsified claims and ghost operations. Governor Tim Walz and Representative Ilhan Omar are also a potential targets for federal investigation.
These victories contribute to DOGE’s reported $215 billion in cumulative savings through early 2026—roughly $1,335 per taxpayer—spanning contract cuts, grant terminations, improper payment recoveries, waste, fraud and abuse. Healthcare fraud remains a priority.
Citizen journalist Nick Shirley has amplified visibility with frontline reporting. His on-the-ground investigations in Minnesota using public records and DOGE-amplified data, exposed empty facilities, luxury vehicles at dormant sites, and implausible billing spikes—uncovering over $170 million in questionable California claims alone. Officials credit such analysis for accelerating enforcement, though state leaders accuse him of politicization.
Vice President Vance and CMS Administrator Mehmet Oz have highlighted over $19 billion in potential fraud nationwide. The strategy—freeze, seize, and pressure—blends anomaly detection, crypto tracing, and traditional probes. California, receiving about 12 percent of federal health spending, remains especially vulnerable.
This doctrine departs from prior passive oversight, provoking friction yet delivering clear momentum. With hundreds of operations shuttered and billions in play, the question is how relentlessly Washington will continue clawing back taxpayer funds.
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