LA Hospice Fraud Tops $3.5B Medicare

Federal and state authorities are confronting a widespread hospice fraud crisis centered in California, with Los Angeles County cited as the source of roughly $3.5 billion in fraudulent Medicare claims due to fake hospices and identity theft. Personal stories, like Linda Henry’s discovery in 2024 that she was enrolled in hospice despite being healthy, illustrate how victims face disrupted medical care and denied services outside hospice when fraud occurs. California has intensified oversight since 2021, revoking hundreds of licenses and implementing emergency regulations in 2025 to tighten eligibility for new hospice licenses. The number of licensed hospices in the state has declined sharply, from about 2,800 in 2022 to roughly 2,100 in 2026, amplifying concerns about access for legitimate patients. Advocates and officials are urging ongoing coordination between state and federal agencies to protect seniors and restore trust in palliative care.