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Feds Arrest Eight in Los Angeles Hospice Fraud Sweep Tied to $50 Million

The operation signals a broader federal drive to purge suspect hospices statewide.

Overview

  • A federal task force arrested eight people Thursday across Los Angeles County in “Operation Never Say Die,” with prosecutors also charging additional defendants in separate cases that officials say total more than $50 million in false claims.
  • Investigators say sham hospice operators enrolled people who were not terminally ill, paid some recruits $300 a month to pose as patients, and then billed Medicare for end‑of‑life care those people did not need.
  • Prosecutors pointed to an Artesia operator accused of submitting over $9 million and being paid $8.5 million, and to a Glendale couple whose hospice allegedly billed more than $5.2 million while paying illegal referral kickbacks.
  • CMS chief Mehmet Oz said officials have taken down 221 hospices in 10 weeks and pledged to review every hospice in California this year, signaling stepped‑up decertifications and tighter screening of providers.
  • Federal officials criticized California’s licensing oversight as Gov. Gavin Newsom cited a moratorium on new hospice licenses and more than 280 license actions, while outlets reported totals ranging from about $50 million to $60 million and 11 to 15 defendants as the cases continue.