Eight Arrested in $50 Million Hospice Fraud Case in California
Federal Authorities Target Healthcare Fraud in California’s Hospice Sector
LOS ANGELES — A significant federal crackdown has resulted in the arrests of eight individuals linked to a fraudulent hospice scheme that allegedly defrauded Medicare of over $60 million. This operation, dubbed "Operation Never Say Die," was spearheaded by the Department of Justice (DOJ) and unveiled a complex network of fraudulent activities within the state’s healthcare system.
The DOJ has charged 15 individuals involved in a scheme that allowed fraudsters to bill Medicare for patients who were not terminally ill. Many of these cases involved the use of stolen identities, with some healthy individuals receiving kickbacks to pose as terminally ill patients, reportedly receiving up to $300 for their participation. The investigation detailed a "pay and chase" strategy where legitimate California hospice licenses were exploited to generate fraudulent claims.
U.S. Attorney Bill Essayli criticized California’s vetting process for hospice licenses, emphasizing a lack of adequate measures to prevent and detect fraud. He pointed out that the defendants allegedly billed Medicare between $5,000 and $6,000 monthly for each fraudulent patient.
"We want people to know it’s not worth it. Don’t do it. We will wake you up at 6 a.m. with the FBI," Essayli stated, stressing the need for accountability in deterring such criminal activities.
California Attorney General Rob Bonta maintains that the oversight of Medicare falls under federal jurisdiction, challenging the claims that state officials bear primary responsibility for the oversight failures. In response to these developments, Bonta has scheduled a press conference for Thursday to address the state’s role in the investigation.
As part of this operation, resources acquired through the fraud have reportedly been used to fund luxury cars, homes, and extravagant vacations. The investigation is anticipated to expand, with more arrests expected nationwide as authorities continue to combat healthcare fraud.
The continued attention to this issue reflects concerns regarding the integrity of Medicare and the necessary reforms to prevent such schemes. In collaboration with federal partners, Dr. Mehmet Oz, who oversees Medicare, is advocating for stricter vetting processes for hospice providers.
As this initiative unfolds, officials are also looking to reinforce efforts across other vulnerable federal programs, such as SNAP, signaling a comprehensive approach to combat fraud in various sectors.
