Federal authorities have shut down 221 hospice care providers in Los Angeles over the past 10 weeks, according to CMS Administrator Dr. Mehmet Oz. The closures are part of a massive crackdown on alleged Medicare fraud, with officials claiming these facilities enrolled patients who were not terminally ill and billed the government for care that was never provided.
Multiple arrests have been made in connection with the investigation, though officials have not disclosed the full number. Prosecutors describe the alleged scheme as involving tens of millions of dollars in fraudulent claims, kickbacks, and sham operations designed to exploit taxpayer-funded programs. The scale of the crackdown has left the city and the healthcare industry on high alert.
Authorities say the suspended hospices displayed several red flags, including enrolling healthy patients, paying individuals to recruit others, and operating with outcomes inconsistent with standard hospice care. Investigators warn that such practices not only defraud Medicare but also put patients at risk by providing inappropriate or inadequate care.
Officials emphasize that the operation is ongoing, and oversight will expand to prevent similar abuses elsewhere. The crackdown highlights the federal government’s commitment to protecting public funds while ensuring that hospice care remains available for truly terminally ill patients who rely on it for end-of-life support.