JUNE 4, 2026
CMS Moratorium on New Home Health and Hospice Providers Draws Scrutiny Over Patient Access
The Centers for Medicare and Medicaid Services has imposed a nationwide six-month moratorium blocking approval of any new home health or hospice care providers. The action follows an investigation into healthcare fraud in Los Angeles County linked to organized crime rings. CMS Administrator Mehmet Oz has been decertifying providers whose billing raised red flags as part of a broader anti-fraud effort directed by President Trump.
The Trump administration launched what it has called a "war on fraud" in the federal healthcare system, with President Trump directing Health and Human Services Secretary Robert F. Kennedy Jr. to take action following his State of the Union address. CMS Administrator Mehmet Oz has been decertifying providers with billing irregularities and pressing states to strengthen oversight of Medicare-funded home health and hospice care.
The moratorium was triggered by investigations into what the Washington Examiner described as "brazen fraud among some sham care providers in Los Angeles County connected to organized crime rings." The nationwide pause on new provider approvals was presented as a protective measure for the public while the scope of systemic abuse is assessed.
Critics of the blanket approach, including the Washington Examiner's commentary, argued that a fraud problem concentrated in large urban areas such as Los Angeles, New York, and Minneapolis does not justify blocking new providers across the entire country. The piece cited the American Hospital Association's warning that the moratorium "may exacerbate existing difficulties" in rural and underserved areas that already face shortages of home health and hospice providers.