A sweeping federal crackdown on health care fraud has led to arrests and charges across California, including a disturbing hospice scheme that allegedly used the identities of dead patients to bill Medicare.
Federal prosecutors say a San Fernando Valley hospice operator who allegedly ran multiple hospice companies, and others, orchestrated a $27.7 million fraud scheme, enrolling people who were not terminally ill — and in some cases already deceased — to generate fake claims.
The California case is part of what the U.S. Department of Justice is calling the largest health care fraud takedown in U.S. history, with 455 defendants charged nationwide over $6.5 billion in alleged fraud.
What happened in the California hospice scheme
Prosecutors say the hospice fraud centered in the Los Angeles area relied on a web of deception to bill Medicare for services that were never provided.
According to federal authorities:
Authorities say the fraud not only siphoned taxpayer dollars but also undermined trust in hospice care, which is intended for patients nearing the end of life.
At least 10 defendants were charged in the Central District of California, including medical professionals and executives accused of defrauding government health programs
Why hospice fraud is a growing problem in California
California has emerged as a hotspot for hospice fraud in recent years, driven in part by the size of the Medi‑Cal and Medicare programs and gaps in oversight.
Hospice care is designed for patients with a life expectancy of six months or less, providing comfort-focused care instead of curative treatment.
But in fraudulent schemes:
These schemes can have real-world consequences. Patients who are improperly placed in hospice may lose access to needed medical treatments, while taxpayer-funded programs like Medicare and Medi-Cal are drained of billions.
State officials say enforcement has ramped up in response, targeting fraud that exploits elderly and vulnerable Californians.
Nationwide takedown spans 45 states, 56 federal districts
The California arrests are part of the DOJ’s 2026 National Health Care Fraud Takedown, a coordinated effort involving federal and state agencies across the country.
Key details from the operation:
Officials say the schemes caused “significant patient harm, including death,” underscoring risks beyond financial losses.
This article originally appeared on Palm Springs Desert Sun: DOJ charges California hospice operators in $27.7M fraud scheme
Reporting by Natalie Neysa Alund and James Ward, USA TODAY NETWORK / Palm Springs Desert Sun
USA TODAY Network via Reuters Connect
By Natalie Neysa Alund and James Ward, USA TODAY NETWORK | USA TODAY Network
