LA Hospice Fraud: $3.5 Billion Stolen From Medicare With "Ghost" Patients

Federal investigators have uncovered a massive hospice fraud scheme in Los Angeles. Providers are accused of stealing an estimated $3.5 billion from Medicare, the U.S. government's health insurance program. The fraud involves creating fake companies and billing for "ghost" patients—people who do not exist or do not need end-of-life care. These sham hospices allegedly enrolled healthy people or obtained personal information to submit false claims. Medicare pays a daily rate for each hospice patient. By inventing thousands of patients, the fraudulent operators generated enormous illegal profits. Law enforcement reports a sharp rise in such schemes across Los Angeles. Authorities are now pursuing criminal charges against the networks behind the fake companies. The case highlights significant vulnerabilities in the Medicare payment system, prompting calls for stricter oversight of hospice providers.