Literature Review

Georgia hospice provider reaches $9.2M settlement with DOJ over kickback allegations McKnights Home Care; by Adam Healy; 6/13/25 Georgia-based Creative Hospice Care Inc paid the Department of Justice $9.2 million to settle claims that it entered kickback arrangements with medical professionals in exchange for patient referrals, the DOJ disclosed Wednesday. “Decisions regarding end-of-life care are incredibly difficult and personal, and families must be able to trust the intentions of their chosen providers,” Georgia Attorney General Chris Carr said in a statement. “Those who instead take advantage of the system for their own personal gain will be held accountable.”

Public: If you think you may have experienced Medicare fraud, call 1-800-Medicare to report it. Posted on X; by Mehmet Oz, "DrOzCMS"; 6/2/25 There’s a Medicare scam out there that can really hurt people, and I want to make sure you’re aware! People are targeting older Americans to trick them to sign up for Hospice without their knowledge.   If you think you may have experienced fraud, call 1-800-Medicare to report it.  To learn more, go to http://Medicare.gov/fraud.

CMS budget puts complaint surveys over routine inspections as main nursing home oversight McKnights Long-Term Care; by Kimberly Marselas; 6/2/25 A proposed 2026 Trump administration budget request would shift nursing home survey priorities, further delaying the time between standard inspections at many facilities. The Centers for Medicare & Medicaid Services budget justification published late Friday calls for a $45 million increase in survey spending across multiple sectors next fiscal year. But it also prioritizes complaint surveys in a way that would reduce the availability of surveyors to conduct routine, annual inspections mandated by law. The document from the Department of Health and Human Services shows the percentage of nursing home standard surveys completed each year would fall from 74% in fiscal year 2024 to a projected 65% completion rate in fiscal year 2026. 

2 West Covina women arrested for alleged $4.8 million hospice care fraud CBS News KCAL, Los Angeles, CA; by Julie Sharp; 6/3/25 The U.S. Department of Justice announced that two West Covina women were arrested Tuesday for an alleged scheme to defraud Medicare of $4.8 million with false hospice care claims. One of the women who was arrested is the owner and operator of two West Covina hospices, Golden Meadows Hospice Inc., and D'Alexandria Hospice Inc., which billed Medicare for hospice services for patients who were allegedly not terminally ill.  Between Sept. 2018 and Oct. 2022, owner and operator Normita Sierra, 71, and her alleged accomplice, Rowena Elegado, 55, collected more than $3.8 million from Medicare on false claims, the DOJ said.

CMS rolls out aggressive strategy to enhance and accelerate Medicare Advantage audits CMS Newsroom; Press RElease; 5/21/25 Agency Will Begin Auditing All Eligible Medicare Advantage Contracts Each Payment Year and Add Resources to Expedite Completion of 2018 to 2024 AuditsToday, the Centers for Medicare & Medicaid Services (CMS) announced a significant expansion of its auditing efforts for Medicare Advantage (MA) plans. Beginning immediately, CMS will audit all eligible MA contracts for each payment year in all newly initiated audits and invest additional resources to expedite the completion of audits for payment years 2018 through 2024.

New York bill aims to ban new for-profit hospices amid fraud concerns CBS WRGB-6, Albany, NY; by Lara Bryn; 5/14/25 A new bill awaiting the governor's signature could ban the establishment of new for-profit hospices in New York, a move lawmakers and industry experts say is necessary to improve care quality and prevent potential fraud. ... The bill has already passed in both the state Senate and House. The push for this legislation comes in part due to findings from national studies by the American Medical Association and ProPublica, which highlighted issues in for-profit hospice care. ... Jeanne Chirico, CEO of the Hospice and Palliative Care Association of New York State, said, "To try and make a quick turnaround of profit either through falsifying eligibility records or by fraudulently submitting records for individuals who never even knew they were on hospice." Chirico noted a case where a New York Medicare recipient was unknowingly enrolled in a hospice-certified program based in California. 

California man sentenced to 12 years’ imprisonment in connection with $17m Medicare fraud schemes U.S. Department of Justice - Office of Public Affairs; Press Release; 2/6/25 A California man was sentenced yesterday to 12 years in prison and three years of supervised release for his role in a years-long scheme to defraud Medicare of more than $17 million through sham hospice companies and his home health care company. According to court documents, Petros Fichidzhyan, 44, of Granada Hills, schemed with others to bill Medicare for hospice services that were not medically necessary and never provided. Fichidzhyan and his co-schemers controlled hospice entities and used foreign nationals’ personal identifying information (PII) to conceal the scheme, using the PII to, among other things, open bank accounts, submit information to Medicare, and sign property leases.

Walgreens will pay up to $350M in settlement with DOJ to resolve opioid prescription lawsuit Fierce Healthcare; by Heather Landi; 4/21/25 Walgreens has agreed to pay $300 million to settle allegations from federal prosecutors that it illegally filled millions of invalid prescriptions for opioids and other controlled substances, the Department of Justice (DOJ) announced Monday. The DOJ also alleges that the retail pharmacy chain sought payment for many of those "invalid" prescriptions by Medicare and other federal healthcare programs in violation of the False Claims Act. The settlement amount is based on Walgreens’s ability to pay, the DOJ said, but Walgreens will owe the U.S. an additional $50 million if the company is sold, merged or transferred prior to fiscal year 2032. 

3 major tactics used by hospice scammers Hospice News; by Jim Parker; 4/18/25 Among the numerous tactics that unscrupulous hospices use to commit fraud, three are rising to the forefront. Four states have garnered national attention as fraud hotbeds — Arizona, California, Nevada and Texas. These regions have seen swarms of new hospices emerging and receiving Medicare dollars. Numerous reports of unethical or illegal practices have surfaced, particularly among these new companies. ... One common practice among them is to keep their patient census low to avoid regulators’ attention, Judy Lund Person, principal of the consulting firm Lund Person and Associates, ... Among these providers, three principal tactics are emerging, according to Sheila Clark, president and CEO of the California Hospice and Palliative Care Association. ...

AGG talks: Home health & hospice podcast - Episode 10: Anti-Kickback Compliance for hospice and skilled nursing providers JD Supra; by Arnall Golden Gregory, LLP; 4/3/25 In this episode, AGG Healthcare attorneys Bill Dombi and Jason Bring discuss recent OIG guidance on hospice and skilled nursing facility relationships, focusing on anti-kickback risks and fraud concerns. They cover key issues such as the importance of documenting fair market value for any services or space provided, being cautious of payments exceeding Medicaid room and board rates, and avoiding arrangements that appear to be made solely to secure referrals. Bill and Jason also touch on increased oversight and enforcement in the healthcare sector under a new presidential administration.

Dr. Oz nomination to lead CMS advances in Senate vote    Modern Healthcare; by Michael McAuliff; 4/3/25 The Senate on Thursday advanced the confirmation of former television host Dr. Mehmet Oz to lead the nation's largest healthcare agencies by serving as administrator of the Centers for Medicare and Medicaid Services. Lawmakers voted 50 to 45 to advance the nomination to a final vote, which is expected Thursday afternoon.  ... He will assume control of an agency in flux that impacts some 160 million Americans and with a budget of around $1.7 trillion. Health Secretary Robert F. Kennedy Jr. is attempting to cut some 20,000 employees across the the Health and Human Services Department while Congress is weighing budget proposals that are likely to require deep cuts in Medicaid. [Continue reading ...]

Walgreens settles Illinois Medicaid fraud lawsuit for $5M Modern Healthcare; by Katherine Davis; 3/25/25 Walgreens Boots Alliance will pay $5 million to settle allegations that it violated U.S. and Illinois false claims statutes by improperly billing Medicaid and Medicare. The settlement, disclosed in court filings [3/24], marks the end of the dispute, which began 11 years ago when two whistleblowers claimed Walgreens’ practices violated statutes. ... The settlement, disclosed in court filings yesterday, marks the end of the dispute, which began 11 years ago when two whistleblowers claimed Walgreens’ practices violated statutes. ... The settlement funds will be divided among the U.S. government, the state of Illinois and the whistleblowers, according to court filings. All parties also filed a joint stipulation of dismissal yesterday. Walgreens declined to comment. [Continue reading; access to the full article may be limited to subscription ...]

Ohio payer beats UnitedHealthcare in racketeering lawsuit, awarded $50M Becker's Payer Issues; by Jakob Emerson; 3/19/25 An Ohio jury awarded Medical Mutual of Ohio over $50 million in damages on March 12 after the payer prevailed in its lawsuit against FrontPath Health Coalition and HealthScope Benefits, a subsidiary of UnitedHealthcare. FrontPath offers employee benefits solutions, and HealthScope is a third-party administrator. .. The defendants were found to have committed federal wire fraud, telecommunications fraud, tampered with records, and obstructed justice by submitting false bid information. The jury found that the conspiracy resulted in significant damages to Medical Mutual and ultimately caused taxpayers to pay higher healthcare costs than necessary.