HHS Shuts Down 500 LA Hospices. Some Were Registered to Burrito Stands and a Tire Store

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by New York Post and California Post

Centers for Medicare & Medicaid Services (CMS) Administrator Dr. Mehmet Oz announced a requirement for all 50 states to audit their Medicaid provider networks to address waste and fraud in federal benefit programs. He issued a 10-day ultimatum to governors to investigate Medicaid fraud or face defunding. Federal and state officials are clashing over enforcement and legal challenges are expected.

Health and Human Services Secretary Robert F. Kennedy, Jr. announced that 500 hospice businesses have been shut down in Los Angeles. He gave an example of fraud that was detected because $6000 per month was paid by the government for a patient that was on hospice, but did not die.

California’s Medicare hospice program is so corrupt that licensed and accredited Certified Hospice Facilities were registered to empty offices, a tire store and a burrito stand! One California doctor, Dr. Fariba Javaherian, a dermatologist, charged Medicare $35 million in questionable billing last year. Her healthcare provider identification showed more than $173 million in claims from Jan. 1, 2018 to Sept. 30, 2025.

From the New York Post:

Dr. Oz touts ‘Fraud War Room,’ ending payments to 400 hospices in California over fears of $100B fraud

Over 400 hospices in Los Angeles have been shut down or cut off as the Centers for Medicare & Medicaid Services’ (CMS) “Fraud War Room” kicks into gear, Administrator Dr. Mehmet Oz revealed on “Pod Force One.”

Shockingly, CMS received “zero” complaints over the “hundreds of millions” of dollars that have been cut off from those hospice programs, Oz claimed, blasting blue state policies for having weak guardrails.

“[During] the last 10 weeks we have shut down, stopped paying over 400 hospices in Los Angeles, in California,” Oz exclusively revealed to The Post’s Miranda Devine. “But here’s the better part of this. Guess how many have complained to us?

The TV doctor-turned CMS honcho estimated that there’s roughly $100 billion in annual fraud plaguing social services, contending that the federal government is too trusting of certain service providers.

From the California Post:

JD Vance suspends 447 hospices in LA as part of anti-fraud crackdown

Licenses for hundreds of suspicious hospice agencies in Los Angeles were suspended by the anti-fraud task force led by Vice President JD Vance on Wednesday, just weeks after The California Post exposed a network of physicians appearing to drive tens of millions in questionable billing.

447 hospice facilities and 23 home health agencies suspected of fraud in the LA area had their license suspended, according to Fox News Digital, representing roughly $600 million in fraudulent spending.

It’s not clear if the number of suspended agencies is in addition to the 221 hospice providers that Centers for Medicare & Medicaid Services Administrator Dr. Mehmet Oz said were suspended back on April 2.

“To all fraudsters: good luck trying to hide from the Vice President’s task force,” a White House official told the outlet. “[The anti-fraud task force is] reviewing and pursuing every possible lead. These suspension numbers, and the dollar values saved, are only going to increase.”

For months, The Post has investigated potentially fraudulent hospices facilities in LA, from addresses that include empty storefronts to an auto parts shop and locations that are unoccupied — others don’t appear to exist at all.

The Post’s reporting resulted in Dr. Oz declaring “every single hospice in California is now under investigation.”

“CMS has gone from a ‘pay and chase’ system of dealing with fraud to a ‘stop and clot,’” he said during an interview with The Post back on March 1, adding that Medicare payments were actively being “cut off” from suspicious clinics.

An investigation into the doctors behind the billing revealed even more troubling signs of fraudulent activity, as physicians appear to siphon millions from the country’s most vulnerable population.

One California doctor, who is a registered dermatologist, charged Medicare $35 million in questionable billing last year.

Dr. Fariba Javaherian is a registered dermatologist, but according to CMS billing data obtained by The Post, she is associated with 63 hospice facilities across California either as a medical director, attending physician or in some other capacity.

Javaherian’s The National Provider Identifier (NPI) — a unique 10 digit number given to individual healthcare providers — was used for 1,662 unique patients across the 63 hospice agencies and appeared on more than 6,000 claims that billed $35,816,331, according to the data.

Between Jan. 1, 2018 and Sept. 30, 2025, Javaherian’s NPI was used for more than 31,000 claims at 130 different hospice agencies, totaling more than $173 million.

As a result of The Post’s investigation, CMS revoked Javaherian’s license to bill Medicare and at least 16 hospice agencies associated with the dermatologist have been suspended.

“As you raised her profile and we started looking into more details at her numbers, it’s hundreds of millions of dollars over several years that she was able to bilk from the American people,” Dr. Oz told the Post following an FBI raid of two hospice operators accused of fraud.

Javaherian is not accused of any wrongdoing, however, during a press conference alongside First Assistant U.S. Attorney Bill Essayli on April 2, Dr. Oz announced federal officials are now looking into the dermatologist, as well as many others thought to be stealing from taxpayers.

A health care insider source told The Post the greater LA area accounts for roughly $3.5 billion in home health and hospice fraud each year.

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