Vance's fraud crackdown blocks $1.4B from hospice and home-care providers

Federal investigators first detected unusually dense clusters of hospice registrations in parts of California, especially Los Angeles
Vice President JD Vance's task force froze $1.4 billion to healthcare providers as most failed to respond, raising Medicare fraud concerns (Getty Images)
Vice President JD Vance's task force froze $1.4 billion to healthcare providers as most failed to respond, raising Medicare fraud concerns (Getty Images)

WASHINGTON, DC: A quiet but aggressive fraud sweep inside the Trump administration is now reshaping America’s healthcare payment system, with Vice President JD Vance at the center of a task force that has already stopped more than $1.4 billion in federal healthcare payments.

According to a report by Fox News, the suspended money was headed to hospice centers and home healthcare agencies across the country, providers that investigators now believe may have been billing the government while offering little, questionable, or in some cases no real patient care at all.



Payment freeze triggers silence

The latest action grew out of an anti-fraud review involving the Centers for Medicare & Medicaid Services, where analysts reportedly began flagging unusual payment patterns, licensing irregularities, duplicate addresses, and providers that appeared active on paper but difficult to verify in reality.

Once payments were halted, officials expected appeals, documentation requests, or legal pushback.

Instead, many providers simply disappeared.

WASHINGTON, DC - APRIL 25: U.S. Vice President JD Vance attends the annual White House Correspondents Association Dinner April 25, 2026 in Washington, DC. The president is making his first appearance at the event which he has shunned in the past. (Photo by Nathan Howard/Getty Images)
Vice President JD Vance attends the annual White House Correspondents Association Dinner on April 25, 2026, in Washington, DC (Nathan Howard/Getty Images)

Administration officials say nearly nine out of 10 suspended providers never contacted CMS after their Medicare payments were frozen, something investigators now view as one of the strongest indicators that many of these businesses may never have been functioning healthcare operations.

A spokesperson for Vance’s office told Fox News that the task force’s mission is to stop taxpayer dollars from flowing into fraudulent systems before the money is gone for good.

DELAWARE, OH - APRIL 23: J.D. Vance, a Republican candidate for U.S. Senate in Ohio, arrives onstage
JD Vance arrives onstage during a rally hosted by President Donald Trump at the Delaware County Fairgrounds on April 23, 2022, in Delaware, Ohio (Drew Angerer/Getty Images)

​California serves as an early warning sign

Federal investigators first began seeing unusually dense clusters of hospice registrations in parts of California, particularly around Los Angeles.

Some addresses reportedly led to strip malls, office parks, retail spaces or buildings that showed no signs of active medical operations.

One healthcare advocate later told lawmakers that in some cases, investigators found mail piling up outside facilities that were supposedly caring for terminally ill patients.

SACRAMENTO, CALIFORNIA - MARCH 19: (Ce and R) Jennifer Siebel Newson and CA. Gov. Gavin Newson and family attend the 19th Annual California Hall of Fame Ceremony at The California Museum on March 19, 2026 in Sacramento, California. (Photo by Steve Jennings/Getty Images)
Jennifer Siebel Newson and CA Gov Gavin Newson and family attend the 19th Annual California Hall of Fame Ceremony at The California Museum on March 19, 2026, in Sacramento, California (Steve Jennings/Getty Images)

Others, according to officials, existed largely in government paperwork and reimbursement records.

That discovery helped trigger a wider review that eventually expanded into multiple states, including Minnesota, where earlier fraud investigations had already raised concerns about oversight failures in federally funded programs.

President Donald Trump has repeatedly made fraud prevention a signature message of his second term, framing it as a direct fight to protect taxpayer money.

Close-up of a male patient's hand in a hospital bed with oximeter. Senior man admitted hospital.
Close-up of a male patient's hand in a hospital bed with an oximeter (Getty Images)

Within that effort, Vance has increasingly taken on a visible role, particularly in healthcare, where federal officials believe fraudulent operators have exploited weak licensing systems, overwhelmed state regulators, and moved money through shell companies.

For now, the $1.4 billion remains frozen while investigators review provider records, ownership structures, licensing files, and patient documentation.

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