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2h ago

Feds Arrest LA Hospice Owners in Medicare Fraud Sweep

Billing data paired with outlier survival rates is driving tougher enforcement.

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An image collage containing 3 images, Image 1 shows Collage of a woman in a conical hat, a building with a "FOR RENT" sign, and the "DEVONSHIRE MEDICAL PLAZA" building, Image 2 shows Fariba Javaherian, wearing a wide-brimmed white hat and sunglasses, stands in front of a body of water under a cloudy sky, Image 3 shows Exterior view of the Devonshire Medical Plaza in Northridge, California
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Overview

  • The FBI arrested a married couple who run 626 Hospice, doing business as St. Francis Palliative Care, on allegations they billed Medicare $7.45 million.
  • Investigators flagged the hospice after CMS data showed about a 2.3% mortality rate over five years, far below what is typical for end‑of‑life care.
  • Officials said the arrests were the first in a broader federal operation announcing 15 defendants, with more than half tied to hospice fraud.
  • CMS revoked the Medicare billing license of Dr. Fariba Javaherian after records linked her provider ID to 63 hospices and more than $35.8 million in claims.
  • CBS reporting found more than 700 of roughly 1,800 Los Angeles County hospices showed red flags for fraud, and House Oversight Republicans have requested state records on hospice controls.