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California Hospice Fraud Crackdown Expands as Patients Report Harm and Reforms Stall

Delays in tighter licensing rules leave gaps that scammers keep exploiting.

Overview

  • California’s attorney general has filed 119 hospice fraud cases since 2021 and this month charged 21 people in a $267 million scheme.
  • State health officials say they have revoked 280 hospice licenses over two years and are reviewing 300 more as new screening, ownership limits, and staffing rules await approval.
  • Federal prosecutors announced separate arrests in California and accused a Pasadena clinic of billing Medicare more than $34 million for care it did not provide.
  • Fraudulent hospice enrollments have blocked seniors from routine treatment, including a reported case where a woman died after being listed in hospice despite needing cataract surgery.
  • Scammers steal Medicare numbers, use brokers to sell beneficiary IDs, set up sham agencies, and even use stolen clinician identities, underscoring weak data sharing between state and federal systems.