DETAILS: Massive hospice fraud scheme EXPOSED

Fox News presents an investigation into what it describes as a multi-billion dollar hospice fraud operation centered in Los Angeles County. According to the report, the scheme allegedly involves ghost patients, fraudulent companies, offshore owners, and corrupt physicians who bill Medicare for patients that don’t exist and care never provided. The report claims that many seniors don’t realize they’ve been enrolled in these hospice programs until they attempt to seek legitimate medical care and discover their Medicare numbers are controlled by the fraudulent hospice providers.

In the video, Fox News interviews Sheila Clark, who alleges that hundreds of LA hospices falsely bill the government for unnecessary care, often cycling patients between providers. The report claims hospice providers can allegedly bill approximately $4,000 per month indefinitely for each enrolled patient. According to Fox News, patients are recruited through advertisements that direct recruiters to post at busy shopping centers or senior living facilities, knocking on doors and offering items like walkers and wheelchairs. Recruiters allegedly earn $300 for each senior over 62 they sign up, regardless of whether the individual is actually sick or qualifies for hospice care.

The report alleges that Medicare identification numbers are then sold to providers, with sources in the video claiming these numbers are “more lucrative than a credit card.” Fox News reports that the alleged fraud costs federal taxpayers millions or billions of dollars, with sources attributing much of the operation to what they describe as Russian Armenian gangs and mafia groups. The video alleges these organizations have corrupted physicians willing to falsify documentation. One example cited in the report involves a doctor who allegedly billed the government $120 million in a single year while claiming to oversee 1,900 patients.

According to Fox News, Los Angeles County has more hospice agencies than 36 states combined and 30 times more than Florida or New York, with approximately 18% of the entire country’s home healthcare billing originating from LA County. The report shows a map depicting a cluster of 287 hospice providers within a 2-mile radius, with some allegedly operating from strip malls, unmarked buildings, a wrecking yard, and even a vacant lot. The video claims licenses can be obtained remotely with minimal oversight.

Fox News reports that the problem has serious consequences for patients, as once a Medicare number is assigned to a hospice provider, the patient allegedly cannot receive care elsewhere, including at hospitals. The report notes that Governor Newsom filed a civil rights complaint against Dr. Oz for allegedly unfairly targeting the Armenian community, though Fox News points out that the governor’s own auditor and state and federal prosecutors have identified Armenian-American organized crime as being behind much of the alleged fraud. According to the report, a 2022 audit informed the governor that weak state controls and poor licensing created the situation, resulting in a moratorium on new hospices and the revocation of approximately 280 licenses.

In Fox News’s Own Words

“They’re human traffickers. They’re trafficking beneficiaries.”

“18% of the whole country’s home healthcare billing is coming out of Los Angeles County. How is that possible?”

“It’s real human life and it has consequences.”

This investigation matters because it exposes alleged systemic vulnerabilities in Medicare oversight that sources claim enable billions in fraudulent billing. According to the report, these schemes not only drain taxpayer funds but also potentially prevent vulnerable seniors from accessing legitimate medical care when they need it most.