US-Arrest Health Care Fraud Nets 8 in SoCal; $50M Hospice Schemes
Key Takeaways
- Eight people arrested and charged in Southern California health care and hospice fraud scheme.
- Total alleged fraud amounts to about $50 million involving Medicare billing.
- Five hospice centers in Glendale, Artesia, Tarzana and Simi Valley billed Medicare for non-terminal patients.
Federal Arrests in Hospice Fraud
Federal officials arrested eight people for health care fraud totaling $50 million.
“LOS ANGELES (AP) – Federal officials arrested eight people they said were involved in various healthcare fraud schemes totalling USD50 million in and around Los Angeles (LA)”
Five cases involved hospice centers billing Medicare for non-terminally ill patients.
Defendants include nurses, a chiropractor, and a psychologist.
The Trump administration made California a focus of its anti-fraud efforts.
State vs Federal Accountability
Newsom's office said the state has aggressively cracked down on hospice fraud.
The state has revoked more than 280 hospice licenses in two years.
Federal prosecutors countered that California had become the kingdom of fraud.
This public spat revealed deep political polarization over fault and responsibility.
Operation Never Say Die
The arrests were part of Operation Never Say Die.
“Federal officials on Thursday arrested eight people they say were involved in various health care fraud schemes totaling $50 million in and around Los Angeles”
Authorities carried out early morning raids across multiple cities.
The largest case involves $9 million in fraudulent claims by an Artesia-based hospice.
She allegedly paid kickbacks in exchange for patient referrals.
Human Cost of Corporate Fraud
Prosecutors allege suspects used funds for travel and personal expenses.
One couple was promised $300 per month despite not being terminally ill.
A 76-year-old woman operated three fraudulent facilities while on bond.
Over 700 of 1,800 hospices in LA County triggered multiple red flags.
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