Los Angeles hospice fraud alleged to reach billions in Medicare claims

Auditors and federal officials say hospice providers in Los Angeles have allegedly billed Medicare for billions using ghost patients and sham companies; California has imposed a moratorium on new hospice licenses while investigations continue.

Officials and auditors report widespread alleged hospice fraud in Los Angeles involving ghost patients, sham companies and improper billing. They say the activity has grown rapidly and may involve billions in Medicare claims. The issue is under review by state and federal authorities. California has paused new hospice licenses while officials examine the industry. Key facts: - Officials and auditors say hospice providers in Los Angeles allegedly used ghost patients and sham companies to bill Medicare for services not provided. - Estimates cited in the report place potential fraud in Los Angeles County in the billions of dollars, according to federal officials. - California has imposed a moratorium on new hospice licenses pending further review, and law enforcement has prosecuted multiple defendants in related cases. - Auditors found an unusually high concentration of licensed hospices in parts of the San Fernando Valley, with many licenses tied to single commercial addresses. Summary: If the allegations are confirmed, officials say the situation has strained oversight of Medicare billing and affected access to care for some beneficiaries. Authorities have imposed a moratorium on new hospice licenses and report that investigations and prosecutions are ongoing. Specific next legal steps and timelines are undetermined at this time.