Los Angeles, California — Federal prosecutors announced sweeping charges Thursday in a major health care fraud case targeting hospice providers accused of exploiting Medicare for tens of millions of dollars.
The Department of Justice said eight individuals, including medical professionals and business operators, were arrested and charged in connection with schemes that allegedly billed Medicare for patients who were not terminally ill. Authorities estimate the fraud exceeded $50 million.
Acting U.S. Attorney Bill Essayli said the defendants operated fraudulent hospice facilities that enrolled ineligible patients and submitted claims for services that were either unnecessary or never provided. Officials emphasized that such schemes drain taxpayer-funded programs and undermine care for legitimate patients.
Investigators highlighted Southern California as a high-risk region for hospice fraud, citing prior analysis that found hundreds of hospice providers in Los Angeles County triggering regulatory red flags. Federal officials, including the FBI and IRS Criminal Investigation division, said the case reflects a broader national crackdown on health care fraud.
Among those charged are operators accused of paying illegal kickbacks for patient referrals and submitting millions in false claims. Several defendants face multiple counts of health care fraud and conspiracy, with potential penalties including lengthy prison sentences.
Authorities said the investigation remains ongoing as part of a wider enforcement effort targeting systemic abuse in Medicare-funded hospice care.
Sources:
- CBS News – MBFC Rating
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