Dr. Oz and Newsom Clash Over Hospice Fraud Allegations Linked to Armenian Groups in Los Angeles
Dr. Oz Alleges Multibillion-Dollar Fraud Scheme in Los Angeles
LOS ANGELES – In a recent interview with FOX 11 at the Milken Global Conference, Dr. Mehmet Oz, head of the Centers for Medicare and Medicaid Services (CMS), brought attention to what he claims is a multibillion-dollar fraud operation in Los Angeles, purportedly orchestrated by "Russian and Armenian gangs." He alleges that a high concentration of hospices in the city contributes to national health care corruption.
Oz asserts that he has identified 42 hospices located within a four-block radius in Van Nuys, which he claims are part of a broader fraud scheme involving the dishonest billing of patients. “In this four block area in Los Angeles, there are 42 hospices. So, either there are a lot of people dying here, or you got a fraudulent activity that is so good everyone wants to get in on it,” he stated in a video that supplemented his claims.
Governor Gavin Newsom quickly responded, criticizing Oz for his comments and accusing him of racially profiling the Armenian American community in Southern California. Newsom’s office emphasized that their investigations have already led to the revocation of over 280 hospice licenses since 2022 and have resulted in 109 criminal charges and 24 civil fraud cases.
The governor dismissed Oz’s allegations as a political maneuver, highlighting California’s proactive measures against hospice fraud. Newsom’s office pointed out that the state has implemented a moratorium on new licenses and is committed to ensuring program integrity.
Dr. Oz’s video investigation, which focused on areas densely populated by Armenian-owned businesses, raised concerns about ethnic profiling. He documented buildings he claimed were involved in fraudulent activities, which included signs in Armenian and Cyrillic script. The investigation concentrated on locations along Van Nuys Boulevard and Victory Boulevard, where multiple businesses registered at similar addresses may indicate fraudulent practices.
Despite the controversy, details regarding the identities of the alleged 42 hospices have yet to be disclosed. CMS has not announced formal investigations against the entities mentioned in Oz’s video, nor have any new case filings been made public.
In a pointed reaction, Newsom’s office stated, “Amazing to watch Dr. Oz cosplay as a fraud fighter for an effort the STATE launched years ago… Given the historic sensitivities involved, we are taking these allegations seriously.”
The ongoing tension between the Trump administration and California regarding health care oversight compounds the situation as House Republicans prepare a hearing titled "Common Schemes, Real Harm," scheduled for February 3, 2026, to explore the infiltration of crime organizations in the Medicare system.
As investigations continue, state officials are urging families to be vigilant against potential hospice fraud, highlighting red flags such as receiving unsolicited offers for "free" services in exchange for Medicare information or enrolling terminally ill patients in hospice care without proper justification.
