California officials make arrests in LA hospice fraud crackdown

California Attorney General Rob Bonta announced the arrest and charging of 21 suspects in Los Angeles on February 20, 2025, as part of a major crackdown on a sophisticated hospice fraud scheme that allegedly siphoned $267 million from the state's Medi-Cal program. The coordinated arrests, which involved multiple law enforcement agencies, targeted individuals accused of orchestrating a network of fraudulent hospice agencies that billed for services never rendered or provided to ineligible patients. The investigation, which gained significant momentum following an in-depth CBS News report exposing systemic hospice fraud in Southern California, revealed a pattern of exploiting vulnerable populations. According to the criminal complaint, operators recruited patients who were not terminally ill—often from homeless shelters or senior living facilities—by offering cash or other incentives. These patients were then enrolled in hospice care, with the agencies submitting millions in fraudulent claims to Medi-Cal for palliative services that were either unnecessary or completely fictitious. Attorney General Bonta emphasized that this case represents one of the largest healthcare fraud prosecutions in California history and signals a renewed commitment to protecting public funds and vulnerable citizens. The scheme not only drained critical resources from the state's healthcare safety net but also potentially endangered patients by enrolling them in inappropriate end-of-life care plans. The crackdown is expected to have a chilling effect on similar fraudulent operations statewide, as authorities continue to audit hospice providers and strengthen oversight mechanisms to prevent future abuses.