Gov. Gavin Newsom recently took a stand against Dr. Mehmet Oz, head of the Centers for Medicare and Medicaid Services, after Oz shared a video. In the video, Oz claims that Armenian crime groups are behind massive healthcare fraud in Los Angeles, estimating a staggering $3.5 billion in improper Medicare claims linked to hospice and home care businesses.
In the video, Oz stands outside an Armenian bakery, underscoring his claims with the bakery’s sign in the background. He suggests a connection between the Armenian community and organized crime, which sparked outrage.
Newsom responded by filing a civil rights complaint, urging the Department of Health and Human Services to investigate what he describes as “baseless and racist allegations.” His office highlighted that such statements could discourage people from participating in vital federal healthcare programs.
Movses Bislamyan, the bakery owner featured in Oz’s video, expressed his disappointment. Following the video’s release, he experienced a 30% drop in business. “We have nothing to do with this fraud,” he lamented, feeling unfairly targeted.
Interestingly, recent trends show that the Trump administration is focusing on alleged fraud in Democratic-led states, including California. Just a day after Oz’s video went live, Newsom acknowledged the sensitive nature of these claims, promising thorough review and action.
Oz, unfazed, stood by his remarks on social media, arguing that rather than defending California against fraud, people are more focused on attacking him. He vowed that CMS and law enforcement will actively pursue fraud cases.
Historically, California’s healthcare industry has seen its share of scams. Following a 2020 investigation by the Los Angeles Times, which shed light on rampant fraud in the largely unregulated hospice sector, the state has ramped up efforts to combat fraudulent practices. Between 2010 and 2020, the number of hospices in Los Angeles surged sixfold, now accounting for over half of the state’s Medicare-certified providers.
Efforts to tackle fraud are already underway, with California’s Department of Justice charging 109 individuals linked to hospice fraud since 2021. Additionally, 280 hospice licenses have been revoked over the same period.
The implications of these allegations extend beyond specific businesses; they touch on broader community concerns. The marketplace can significantly suffer from unfounded accusations, showing how powerful influence and reputation can be, especially in multicultural neighborhoods.
For more on healthcare fraud issues, check out the California Department of Justice for updates on ongoing investigations.
