A sweeping federal crackdown in Southern California is exposing what critics say is one of the largest healthcare fraud networks in modern history—and raising serious questions about why state leadership failed to act sooner.
At the center of the operation is Vice President JD Vance, whose anti-fraud initiative has already led to the suspension of 221 hospice and home healthcare providers across Los Angeles. The sudden surge in enforcement represents a dramatic escalation from just 70 suspensions the week prior, signaling what officials describe as a systemic breakdown rather than isolated misconduct.
Federal agents, including FBI tactical units, carried out coordinated raids across Southern California under an initiative dubbed “Operation Never Say Die.” Authorities say the targets were not minor violators but sophisticated operators running fraudulent hospice businesses—billing Medicare for end-of-life care that was never needed.
In one particularly alarming example, a hospice facility based in Glendale reported a non-death discharge rate exceeding 70 percent. That means the majority of patients classified as terminal were ultimately well enough to leave care—despite the facility collecting tens of thousands of dollars per patient in federal reimbursements.
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