Vice President JD Vance’s task force just suspended 447 Los Angeles hospices in a $600 million Medicare fraud bust—but what happens when state Democrats try to shield the scammers?
Story Snapshot
- Vance’s anti-fraud task force suspends 447 hospices and 23 home health agencies, alleging over $600M in Medicare theft—a 539% jump from 70 earlier in April.
- Fraudsters ran “phantom” facilities, billing for healthy patients lured with cash and vitamins in LA hotspots like Van Nuys.
- Federal “Operation Never Say Die” arrests doctors and nurses; state probes 300+ more amid clashes over AB 2624 privacy bill.
- Taxpayers lose billions; legitimate patients face disruptions in a county with 1,800 hospices, 39% flagged for red flags.
- Trump administration hails victory against California’s “kingdom of fraud,” setting national precedent.
Vance Task Force Escalates Suspensions to Historic Levels
Vice President JD Vance leads the anti-fraud task force that suspended 447 hospices and 23 home health agencies in Los Angeles. Federal estimates peg suspected Medicare fraud at over $600 million. Suspensions surged 539% from 70 in early April 2026. Task force spokespeople promise more actions, stating they pursue every lead. This targets “phantom” operations billing for non-terminally ill patients.
Operations concentrated in areas like Van Nuys, where 42 licenses cluster in four blocks. Fraudsters flipped licenses, stole identities from the dark web, and paid immigrants $300 monthly plus vitamins to enroll as patients. LA County hosts 1,800 hospices; CBS analysis flags over 700, or 39%, with multiple state audit red flags like 85% survival rates.
Federal Operation Never Say Die Delivers Arrests
Federal agents arrested suspects on April 10, 2026, under “Operation Never Say Die.” Targets included psychologist Gladwin Gill and nurse Amelou Gill, who billed $5.2 million using their daughter’s name to dodge bans. Lolita Minerd ran an Anaheim facility with 85% patient survival. Nita Palma operated three hospices from prison. Arrests hit Covina, Anaheim, and Glendale.
Authorities executed raids and charged 11 defendants in schemes exceeding $50 million. First Assistant U.S. Attorney Bill Essayli confirmed coordination with Vance’s task force. Vance posted on X about taking down fraudsters stealing from Americans. These actions build on California DOJ’s “Operation Skip Trace,” which charged 21 for $267 million Medi-Cal fraud via 14 fake hospices.
California State Response Lags Amid Political Tensions
California AG Rob Bonta announced state charges for the $267 million scheme, claiming his office does the “hard work” of investigations and arrests. DHCS probes 300+ hospices for license revocation. State audit flagged high survival rates and other indicators. Yet critics highlight AB 2624, introduced by Bonta’s wife Mia, which passed committee 11-2 to protect immigrant providers’ privacy.
New: JD Vance Shuts Down 447 LA Hospices in $600M Fraud Crackdown https://t.co/GXiYPyMmS7
— mark harry (@mharry860) April 15, 2026
Journalist Nick Shirley dubs it the “Nick Shirley Act,” arguing it shields fraud by blocking exposure of shady operators. Facts align with conservative priorities: federal overrides expose state leniency, prioritizing criminals over taxpayers. Common sense demands transparency over privacy for scammers preying on the vulnerable. Bonta’s prosecutions ring hollow against legislative protection.
Impacts Rip Through Taxpayers and Patients
Suspensions disrupt services for legitimate end-of-life patients, though fraud scale suggests minimal real care occurred. Taxpayers face $600 million plus in losses, diverting funds from actual Medicare needs. LA immigrant communities suffer targeted enrollments and data breaches. Long-term, billions could return; industry scrutiny rises on 1,800 facilities.
Politically, Vance’s triumphs contrast California Democrats’ efforts, eroding trust in hospice care. This sets a national model: swift federal suspensions recover funds faster than state processes. Broader effects include revoked licenses and heightened audits, protecting seniors from “cash-producing” schemes exploiting lax oversight.
Sources:
JD Vance task force hospices fraud
LA hospice fraud multimillion-dollar Medicare arrests
California fraud crackdown Los Angeles hospice arrests












