Federal officials have arrested eight people connected to healthcare fraud schemes worth $50 million across Southern California, mostly involving hospice care centers. Congress has also launched a formal investigation into what it calls “rampant hospice fraud” in California, saying tens of millions in taxpayer money may have been wrongly paid to companies in the region.
One hospice owner in Artesia submitted over $9 million in fake claims to Medicare and was paid more than $8.5 million. Prosecutors say one couple was promised $300 a month to sign up for hospice care even though they did not need it, receiving items like nutritional shakes, vitamins, and wheelchairs. A Los Angeles nurse allegedly used a hospice center in Tarzana to submit more than $3.8 million in claims, with Medicare paying out around $3.4 million.
