California is reeling as a massive fraud scandal engulfs the state, potentially derailing Governor Gavin Newsom's political ambitions. The scale of the deception is monumental, with allegations of tens of billions of dollars in fraudulent spending linked to fake businesses masquerading as legitimate healthcare providers. Under Newsom's watch, this unchecked corruption could well become the scandal of the century, threatening to topple the entire Democratic Party infrastructure.
- The LA Times first uncovered systemic fraud in California's healthcare sector, spurring a state audit that revealed $105 million in Medicare overbilling in 2019 alone.
- Dr. Oz, now a key figure in exposing this fraud, has revealed Los Angeles County as the epicenter of a $3.5 billion healthcare scam.
- Despite Newsom's counterclaims, the fraud persists, with LA County's hospice agency numbers dwarfing those of entire states.
Back in 2020, the LA Times shed light on widespread fraud in California's healthcare system through a groundbreaking investigative report. This exposé revealed how hospice providers transformed end-of-life care into a multibillion-dollar business, prompting a state audit in March 2022 that confirmed $105 million in Medicare overbilling in LA County alone. Now, following revelations from Minneapolis, the Trump administration is uncovering corruption not just in LA, but throughout California.
Enter Dr. Oz, the former television personality and now the Administrator for the Centers for Medicare & Medicaid Services. He's blowing the whistle on what could be the largest Medicare fraud operation in American history. His findings are infuriating. Just last week, Dr. Oz declared Los Angeles County the epicenter of healthcare fraud in America, with an astonishing $3.5 billion in fraud through hospice and home healthcare schemes. But this is just the tip of the iceberg.
LA County shockingly hosts 1,923 hospice agencies—more than the combined total of 36 states. It's 30 times more than Florida or New York, despite having significantly fewer seniors. These agencies aren't here to meet a need; they serve a more sinister purpose. An astounding 18% of all home healthcare billing in the nation comes from LA County alone. In Van Nuys, a neighborhood in the San Fernando Valley, Dr. Oz found 42 hospices in a mere four-block radius. Even worse, state auditors discovered 210 hospice agencies within a single square mile, including a commercial building housing 112 registered hospices without any visible signage.
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Fox News corroborated these findings, uncovering supposed hospices operating out of strip malls next to businesses like burrito stands and auto parts stores. In a shocking twist, one doctor reportedly billed the government $120 million in a single year for overseeing 1,900 patients—this isn't mere incompetence; it's organized crime. The perpetrators, many of whom are of Armenian descent, echo a decade-old case where 73 members of the Mir-ZOYan Ter-JANian crime ring were convicted of a $100 million Medicare fraud.
Governor Newsom is scrambling in response to these revelations, even filing a civil rights complaint against Dr. Oz, accusing him of "racially charged allegations." It's a desperate move reminiscent of Governor Walz's failed attempt to deflect fraud allegations by playing the race card. Newsom's claim to have been addressing this fraud since before his governorship rings hollow, as the problem has only worsened under his watch.
Dr. Oz, undeterred by Newsom's tactics, has demanded a comprehensive action plan from the governor within 30 days. He seeks clarity on how California establishes fraud recovery thresholds and why oversight is so lax. The federal government may intervene if Newsom fails to act, as this is not just a California issue—federal funds from across the nation are being siphoned off by criminals siphoned off by criminals.
The consequences are dire: real patients suffer as legitimate hospice providers shut down, and seniors who need care find themselves unable to access it due to fraudulent hospices hijacking their Medicare. This colossal fraud undermines the very foundation of the Democrat Party's claim as the compassionate party. With the ongoing developments in California, we may soon witness another Democratic governor's spectacular downfall, akin to what happened in Minnesota spectacular downfall.
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