Los Angeles Hospices Scam Billions from Medicare as Fake Companies and Corrupt Doctors Profit.
A massive scam involving hospice providers in Los Angeles has been uncovered, with auditors estimating that the scammers have bilked taxpayers of billions of dollars for fake patients, substandard care, and no care at all. The California Attorney General's office says that the situation is so dire that it has become an "epidemic" within the greater Los Angeles area.
At the epicenter of this scam are ghost patients - those who never existed, but whose Medicare numbers have been purchased by recruiters to sell to hospice providers for cash. In return, the recruiter earns money for every month a senior stays with their hospice care.
Another form of fraud involves upcoding and unbundling procedures to inflate invoices. Hospices that bill the federal government $260 per day for each patient under their care are raking it in from these scams, with many patients dying within 18 days or less after being admitted to the facility.
A staggering number of hospice providers - 1,923 in Los Angeles County alone - have been found to be operating outside the law. This number is more than three times the number of hospices that operate in either Florida or New York, despite those states having a significantly larger population.
California has even imposed a moratorium on new hospice licenses until it can clean up the industry, but hundreds of fraudulent providers remain in operation. The scam is so pervasive that seniors who need legitimate care are being turned away because their Medicare numbers have been "owned" by a hospice provider.
"We've seen cases where patients call the hospice and there's no one available to answer," said Sheila Clark, president of the California Hospice and Palliative Care Association. "They're human traffickers. They're trafficking beneficiaries in and out of hospices, home health."
In fact, investigators have discovered that Russian and Armenian gangs are behind some of the most egregious scams, with corrupt doctors willing to participate in the scheme for financial gain.
The issue has become so critical that Dr. Mehmet Oz, head of the Centers for Medicare and Medicaid Services, has sounded the alarm, saying "Hospice is crazy here" and estimating that three billion dollars in fraud have been perpetrated by hospice providers in LA County alone in just five years.
"It's all just paperwork," said an LA hospice owner who spoke on condition of anonymity. "I could fill out an application anywhere in the world and get a license."
A massive scam involving hospice providers in Los Angeles has been uncovered, with auditors estimating that the scammers have bilked taxpayers of billions of dollars for fake patients, substandard care, and no care at all. The California Attorney General's office says that the situation is so dire that it has become an "epidemic" within the greater Los Angeles area.
At the epicenter of this scam are ghost patients - those who never existed, but whose Medicare numbers have been purchased by recruiters to sell to hospice providers for cash. In return, the recruiter earns money for every month a senior stays with their hospice care.
Another form of fraud involves upcoding and unbundling procedures to inflate invoices. Hospices that bill the federal government $260 per day for each patient under their care are raking it in from these scams, with many patients dying within 18 days or less after being admitted to the facility.
A staggering number of hospice providers - 1,923 in Los Angeles County alone - have been found to be operating outside the law. This number is more than three times the number of hospices that operate in either Florida or New York, despite those states having a significantly larger population.
California has even imposed a moratorium on new hospice licenses until it can clean up the industry, but hundreds of fraudulent providers remain in operation. The scam is so pervasive that seniors who need legitimate care are being turned away because their Medicare numbers have been "owned" by a hospice provider.
"We've seen cases where patients call the hospice and there's no one available to answer," said Sheila Clark, president of the California Hospice and Palliative Care Association. "They're human traffickers. They're trafficking beneficiaries in and out of hospices, home health."
In fact, investigators have discovered that Russian and Armenian gangs are behind some of the most egregious scams, with corrupt doctors willing to participate in the scheme for financial gain.
The issue has become so critical that Dr. Mehmet Oz, head of the Centers for Medicare and Medicaid Services, has sounded the alarm, saying "Hospice is crazy here" and estimating that three billion dollars in fraud have been perpetrated by hospice providers in LA County alone in just five years.
"It's all just paperwork," said an LA hospice owner who spoke on condition of anonymity. "I could fill out an application anywhere in the world and get a license."
! I mean i already knew there were problems with our healthcare system but to find out it's been happening like this in LA is just wild 
. billions of dollars bilked from taxpayers because some greedy doctors and recruiters are making bank off fake patients?! it's insane 
. and that moratorium on new licenses isn't doing much since hundreds of fraudulent providers still exist 
. dr oz saying "hospice is crazy here" should be a rallying cry for reform 
. we need to get to the bottom of this and make sure our seniors are getting the care they deserve, not some fake hospice scam artists 
.
i mean werent we supposed to be talkin bout healthcare not scammin the system? anyway i guess russian armenian gangs and corrupt docs are behind some of this mess but whats really sad is that legit hospice providers r gettin shafted too 
. i mean wut kinda person gets into this racket? corrupt docs r even gettin in on it. three billion bucks in 5 yrs tho? thats just insane. gotta do somethin to stop dis epidemic 
. cant believe ppl are human traffickin seniors like dis...just not right 
It's not just about filling out forms, it's about taking advantage of vulnerable people. I don't get how anyone can justify this kind of behavior.
the fact that russian and armenian gangs are behind it all makes it even more shocking. it's just not right that seniors who need actual care are being turned away because of these scams. can't we just have some transparency in our healthcare system already? 
. I'm all for efficiency, but not at the cost of people's lives or trust. California needs to get its act together and shut down these scams ASAP 
what does it say about our system that we have so many loopholes for scammers to exploit? 
it also makes me wonder how many innocent patients are suffering because of these fake hospice providers... it's like they're playing with people's lives, and that's just not right. 
& corrupt doctors gettin' in on the action too 
... LA seniors can't get the help they need bc their Medicare numbers got "sold" to hospice providers 
It's just heartbreaking. We need to get to the bottom of this and make sure that these scammers get held accountable. 
. and the worst part is, russian and armenian gangs are involved? that's like, so not okay 
. that's not exactly the kind of care i'd expect from a place that's supposed to be helping people 
.
.
. corruption is everywhere and it takes a lot to get people to care about it until something like this comes along... but now that we have, let's hope california can clean up the industry and bring some accountability to these fake hospices 
.
. like dr oz said tho, hospice in la is straight up CRAZY 
. And to think, these scammers are making it look easy - just fill out some paperwork, get a license anywhere in the world, and start raking it in 
I feel for the people who are actually trying to help seniors in need - it's heartbreaking that these scammers are making it so much harder for them to do their job.
... we need some real accountability here. And what can be done to stop these gangs from exploiting seniors and our tax dollars?!