Dr. Mehmet Oz said fraud uncovered in Minnesota involving billions of dollars in public funds is only a small part of a much larger national problem, warning that widespread abuse in the healthcare system is placing vulnerable patients at risk and threatening the stability of federally funded care programs.
Oz made the remarks while discussing what he described as systemic fraud in healthcare, arguing that recent cases in Minnesota, while serious, are overshadowed by far larger schemes he said he observed in California.
“And here’s the hard part to fathom,” Oz said.
“I don’t want everyone to take a deep breath now, and Minnesota, which is cold this time of year, is just the tip of the iceberg.”
Oz said the fraud identified in Minnesota involves enormous sums of money and has consequences that extend beyond financial losses.
“I think what we’re seeing in Minnesota, which is billions of dollars of fraud that hurts our most vulnerable people and puts them at risk,” he said.
According to Oz, the impact of healthcare fraud goes beyond misused funds and can directly harm patients by denying them proper care.
“Because you steal not only their money, but you can steal their lives,” Oz said.
“Putting them at risk for bad services provided at the wrong time that actually take away opportunities for others to get treatment.”
Oz emphasized that while the Minnesota cases have drawn significant attention, they represent only a fraction of what he believes is occurring elsewhere in the country.
“But what we’re seeing in Minnesota is tip of the iceberg,” he said.
He said the scale of fraud he observed in California far exceeds what has been uncovered so far in Minnesota, particularly in specific sectors of the healthcare industry.
“Because it is dwarfed by what I saw in California, which is whole scale cultural malfeasance around health care,” Oz said.
Oz described what he characterized as an entrenched culture of fraud in parts of California, especially in the Los Angeles area.
“There is a a acceptance that you need to be in the fraud business, especially in Los Angeles,” he said.
According to Oz, the financial magnitude of the alleged fraud in California is staggering, particularly within hospice and home healthcare services.
“And the magnitude of fraud that we believe is approximating $4 billion just in hospice and home health care,” Oz said.
“And I want to spend a few minutes walking you through what’s really happening there.”
He cautioned that what has been uncovered in California may not be isolated and could reflect a broader national problem.
“Because if it’s reflective of what might happen in other parts of the country, or might already be happening elsewhere, it’s very concerning,” Oz said.
He said the stakes are particularly high because federal healthcare programs rely on trust, accountability, and proper oversight to function effectively.
“For the core infrastructure of federally funded health care,” Oz said.
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