Hospice with 97% survival rate accused of defrauding Medicare for $7.45M

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The FBI arrested a married couple Thursday accused of fraudulently billing Medicare for $7.45 million while running a hospice with a survival rate reported to be more than 97% after five years. They were the first in a series of arrests planned Thursday, federal officials told CBS News.

A high survival rate at a hospice provider is one of a series of red flags identified by state auditors for fraud because most people enter hospice care in the final stages of a terminal illness. In past cases of fraud, operators were found to be using false or stolen identities to collect federal reimbursements for palliative care.

The targets of the early-morning operation were Gladwin and Amelou Gill, a doctor and psychologist who co-own 626 Hospice, which does business as St. Francis Palliative Care, according to the FBI.

The FBI raid took place in the residential neighborhood of San Dimas, California, as FBI SWAT personnel announced over a loud speaker they have an arrest warrant. CBS News was at the Southern California location when the FBI agents executed the first early morning arrests.

Hospice fraud in California has become a major focus of Republicans in Washington, who have been highlighting the problem in political attacks on prominent Democratic state leaders. Vice President JD Vance was recently placed in charge of an anti-fraud initiative.

California officials have told CBS News the issue of hospice fraud is a problem nationwide, but that state law enforcement agents have been investigating the issue and conducting their own enforcement actions over the past several years.

Over 700 of the roughly 1,800 hospices in LA County triggered multiple red flags for fraud as defined by the state, the CBS News analysis revealed. Those key warning signs include low patient counts, excessive billing, staff shared across multiple companies, and supposedly terminally ill patients who were later discharged alive.

Another red flag: multiple hospices clustered in one building, including one office plaza with 89 registered hospices, which patient advocate Sheila Clark called "ground zero" for Medicare hospice fraud.


I swear, I doubt if there are enough federal agents in CA to cover it all.

CA makes squeaky noises about investigating the rank fraud in the Hospice industry but it seems like it's the feds who are doing the heavy lifting.


Gee, I wonder why? 😐
 
The FBI arrested a married couple Thursday accused of fraudulently billing Medicare for $7.45 million while running a hospice with a survival rate reported to be more than 97% after five years. They were the first in a series of arrests planned Thursday, federal officials told CBS News.

A high survival rate at a hospice provider is one of a series of red flags identified by state auditors for fraud because most people enter hospice care in the final stages of a terminal illness. In past cases of fraud, operators were found to be using false or stolen identities to collect federal reimbursements for palliative care.

The targets of the early-morning operation were Gladwin and Amelou Gill, a doctor and psychologist who co-own 626 Hospice, which does business as St. Francis Palliative Care, according to the FBI.

The FBI raid took place in the residential neighborhood of San Dimas, California, as FBI SWAT personnel announced over a loud speaker they have an arrest warrant. CBS News was at the Southern California location when the FBI agents executed the first early morning arrests.

Hospice fraud in California has become a major focus of Republicans in Washington, who have been highlighting the problem in political attacks on prominent Democratic state leaders. Vice President JD Vance was recently placed in charge of an anti-fraud initiative.

California officials have told CBS News the issue of hospice fraud is a problem nationwide, but that state law enforcement agents have been investigating the issue and conducting their own enforcement actions over the past several years.

Over 700 of the roughly 1,800 hospices in LA County triggered multiple red flags for fraud as defined by the state, the CBS News analysis revealed. Those key warning signs include low patient counts, excessive billing, staff shared across multiple companies, and supposedly terminally ill patients who were later discharged alive.

Another red flag: multiple hospices clustered in one building, including one office plaza with 89 registered hospices, which patient advocate Sheila Clark called "ground zero" for Medicare hospice fraud.


I swear, I doubt if there are enough federal agents in CA to cover it all.

CA makes squeaky noises about investigating the rank fraud in the Hospice industry but it seems like it's the feds who are doing the heavy lifting.


Gee, I wonder why? 😐
Hospice is funded by Medicare. Medicare is funded and overseen by the Federal government. It is the Federal governments job to over see that funding. It is not the states job.
 
Hospice is funded by Medicare. Medicare is funded and overseen by the Federal government. It is the Federal governments job to over see that funding. It is not the states job.
Its just 1 huge fraud after another, at some point bad, very bad things are going to start knocking some domino's down
 
Its just 1 huge fraud after another, at some point bad, very bad things are going to start knocking some domino's down
Well ya fraud has been around for a very long time. To many people to keep track of. We are what 38 trillion in debt. I don't know what it takes to get this type of funding so I have no idea how to fix it. The only federal funding I have ever been involved in was for roads, bridges, and sewers. Pretty easy for them to tell if the road, bridge or sewer was there or not. I didn't see much of a way to fool the system of course I wasn't looking for one. I don't really understand hospice never been involved in it other than when I volunteered for childrens hospital. I did deliver hospice supplies at times while volunteering. This consisted of ringing a door bell, handing a box over and getting a signature. My understanding of it was that these were mainly pain medicines for dying kids. I know some times these kids did end up surviving but had no idea what percentage of times. Tried not to think about it to much. Kinda heart the heart realizing there was a dying kid in the house. I guess ya train and hire more forensic accountants?
 
Hospice is funded by Medicare. Medicare is funded and overseen by the Federal government. It is the Federal governments job to over see that funding. It is not the states job.

You're wrong....It may be funded by the .gov but it's done so with block grants. Oversight is up to the state.

In other words CA says that we need a X amount of Hospice money and the feds more or less give it to them in the form of a grant....It's up to the state (say CA) to see that it's issued out properly.

Well, given a state like CA never saw a federal dollar as nothing but a grift stream you have what you have in places like CA, MN, NY, and Maine. I can't even blame Biden's bunch for this one other than refusing to follow-up when fraud was reported.

At least the current agency heads under Trump are starting to wise up and more strings are starting to be attached to federal monies.
 
You're wrong....It may be funded by the .gov but it's done so with block grants. Oversight is up to the state.

In other words CA says that we need a X amount of Hospice money and the feds more or less give it to them in the form of a grant....It's up to the state (say CA) to see that it's issued out properly.

Well, given a state like CA never saw a federal dollar as nothing but a grift stream you have what you have in places like CA, MN, NY, and Maine. I can't even blame Biden's bunch for this one other than refusing to follow-up when fraud was reported.

At least the current agency heads under Trump are starting to wise up and more strings are starting to be attached to federal monies.
Lol says you but not true.
 

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You're wrong....It may be funded by the .gov but it's done so with block grants. Oversight is up to the state.

In other words CA says that we need a X amount of Hospice money and the feds more or less give it to them in the form of a grant....It's up to the state (say CA) to see that it's issued out properly.

Well, given a state like CA never saw a federal dollar as nothing but a grift stream you have what you have in places like CA, MN, NY, and Maine. I can't even blame Biden's bunch for this one other than refusing to follow-up when fraud was reported.

At least the current agency heads under Trump are starting to wise up and more strings are starting to be attached to federal monies.
Lol says you but not true.

Hospice fraud is primarily investigated by federal agencies responsible for overseeing Medicare and Medicaid, often in collaboration with state law enforcement. The U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG)is the lead agency investigating these crimes.
Office of Inspector General (.gov)
Office of Inspector General (.gov) +4
Key agencies and entities involved in investigating and prosecuting hospice fraud include:
  • HHS-OIG (Office of Inspector General): Conducts audits, investigations, and evaluations to identify fraud, waste, and abuse in hospice programs.
  • The Federal Bureau of Investigation (FBI): Investigates healthcare fraud, particularly in cases involving organized crime, high-dollar fraud, or schemes covering multiple states.
  • Department of Justice (DOJ) & U.S. Attorneys' Offices: Prosecutes cases investigated by the OIG and FBI, often pursuing charges under the False Claims Act.
  • Centers for Medicare & Medicaid Services (CMS): Identifies potential fraud through data analysis, conducts site visits, and imposes administrative sanctions, such as revoking billing privileges.
  • Medicaid Fraud Control Units (MFCUs): State-level units that investigate and prosecute fraud in state Medicaid programs.
  • Congressional Committees:Occasionally launch investigations into systemic issues, such as the 2026 investigation into "rampant" California hospice fraud by the House Oversight Committee.
    Office of Inspector General (.gov)
    Office of Inspector General (.gov) +7
How to Report Hospice Fraud
Suspected fraud can be reported to the HHS-OIG via their hotline (1-800-HHS-TIPS) or website. Reports can also be made through 1-800-MEDICARE or through state-specific Senior Medicare Patrol (SMP) programs.
Office of Inspector General (.gov)
Office of Inspector General (.gov) +2
 

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