Literature Review
All posts tagged with “Regulatory News | Fraud & Abuse News.”
What the BrightSpring-Sevita deal means for large health care transactions
03/19/26 at 03:00 AMWhat the BrightSpring-Sevita deal means for large health care transactions Hospice News; by Jim Parker; 3/13/26 Though not a hospice transaction, the trajectory of BrightSpring Health Services’ (Nasdaq: BTSG) divestiture of its ResCare community living business could signal changes in the way the federal government approaches large health care deals. BrightSpring in January 2025 entered into a definitive agreement to sell ResCare Community Living to Sevita, a provider of home and community-based specialty health care, for $835 million in cash consideration. Closure of the transaction was delayed by a Federal Trade Commission (FTC) anti-trust complaint. The FTC later cleared the deal after reaching an agreement with Sevita, which required the company to sell 126 intermediate care facilities to reduce any anti-competitive impact of the acquisition. ...
Most newly enrolled California hospice agencies flagged for fraud, CMS says
03/19/26 at 02:00 AMMost newly enrolled California hospice agencies flagged for fraud, CMS says Washington Examiner; by Mia Cathell; 3/18/26 A top official at the Centers for Medicare & Medicaid Services informed Congress on Tuesday that federal investigators have stripped billing privileges from three-fifths of newly enrolled hospice agencies that have continued to pop up in California, a state long riddled with healthcare fraud. Of the remaining California-based hospice service providers that emerged over the past six months, 35% were flagged for corrective action, Kimberly Brandt, the chief operating officer of CMS, told the House Energy and Commerce Subcommittee on Oversight and Investigations.
CMS implements enhanced oversight for MAC MBI lookup tools
03/18/26 at 03:00 AMCMS implements enhanced oversight for MAC MBI lookup tools Hospice News; by Jim Parker; 3/17/26 ... In response to a rise in these fraudulent activities, CMS has strengthened oversight of Medicare Administrative Contractor (MAC) MBI lookup tools. The agency now monitors MBI searches against submitted claims using National Provider Identifiers (NPIs). Access to these tools may be revoked if providers conduct a high volume of lookups without submitting corresponding claims. This move by CMS is likely an important step in combatting fraud, according to Sheila Clark, president and CEO of the California Hospice and Palliative Care Association (CHAPCA).
Report: Over 40% of hospice centers in L.A. County ‘show multiple indicators’ of fraudulent activity
03/17/26 at 03:00 AMReport: Over 40% of hospice centers in L.A. County ‘show multiple indicators’ of fraudulent activity One America News; by Addie Davis; 3/13/26 Over 700 of the roughly 1,800 hospice agencies in Los Angeles County show multiple state identified indicators of fraud, according to an analysis by CBS News. A 2022 California state audit highlights a staggering 1,500% surge in hospice agencies since 2010. By 2019, Los Angeles County’s density of hospice centers reached six and a half times the national average relative to its elderly population — a saturation point linked to an estimated $105 million in Medicare overbilling, according to CBS News.
Hospice fraud explodes in California after state ‘crackdown’: 742 flagged providers, $105 million overbilled, and ghost offices
03/13/26 at 02:45 AMHospice fraud explodes in California after state ‘crackdown’: 742 flagged providers, $105 million overbilled, and ghost offices California Globe; by Megan Barth; 3/11/26 California investigative reporter Christian Hartsock, in collaboration with California State Assemblywoman Alexandra Macedo for the California Courier, released a breaking undercover investigation just days ago, exposing dozens of suspicious hospice and home healthcare agencies in Los Angeles. Their on-site visits revealed hundreds of companies registered to crumbling buildings with no ramps, no handicap parking, disconnected phones, and signs reading “Out to Lunch.” Hartsock’s footage highlights how over $3.5 billion in Medi-Cal fraud has been identified in Los Angeles County alone, with 31% of all U.S. hospices registered there despite only 2% of the nation’s aging seniors residing in the area.
Van Nuys address linked to nearly 200 hospice agencies, lawmaker says
03/13/26 at 02:30 AMVan Nuys address linked to nearly 200 hospice agencies, lawmaker says NBC Los Angeles-4, Los Angeles, CA; by City News Service; 3/11/26 A Van Nuys building is listed as the registered address for 197 hospice agencies, according to a state lawmaker who said Wednesday the discovery raises questions about oversight of California's hospice licensing system. Assemblywoman Alexandra Macedo, R-Tulare, said the agencies are registered at 14545 Friar St., where she said she visited the property after reviewing licensing records. ... The lawmaker said the situation highlights potential gaps in the state's oversight of hospice providers under Gov. Gavin Newsom's administration. In a statement to NBCLA, Newsom's office said the governor "cracked down on hospice fraud years." ... The statement did not comment on Macedo's findings at the Van Nuys building. NBCLA has also reached out to the Centers for Medicare and Medicaid Services for comment.
Aetna agrees to pay $117.7 million to resolve false claims act allegations
03/13/26 at 02:00 AMAetna agrees to pay $117.7 million to resolve false claims act allegationsDOJ press release; 3/11/26Aetna Inc., a national insurer incorporated under the laws of Pennsylvania, has agreed to pay $117,700,000 to resolve allegations that it violated the False Claims Act by submitting or failing to withdraw inaccurate and untruthful diagnosis codes for its Medicare Advantage Plan enrollees in order to increase its payments from Medicare.
California hospice fraud: What to know as blame game erupts
03/13/26 at 01:00 AMCalifornia hospice fraud: What to know as blame game erupts Newsweek; by Jasmine Laws; 3/11/26, updated 3/12/26 The social media platform X has been awash with criticism targeted at California Governor Gavin Newsom as a CBS News report detailed the extent of the state's hospice fraud problem. Newsom's office has been hitting back at the comments, reminding users that the state "cracked down on hospice fraud years ago," and has been pointing the finger at President Donald Trump, as his administration paused a hospice oversight program at the start of 2025. ... Responding to Newsom's office's comments, White House spokeswoman Abigail Jackson told Newsweek: "No one cares about Newscum’s boring X posts ..." While California has been in the spotlight for its hospice fraud, it is not the only state experiencing the problem—it is a nationwide issue. ... A report by the U.S. Department of Health and Human Services Office of the Inspector General in 2023 found that suspected hospice fraud amounts totaled an estimated $198.1 million nationwide. However, some states in particular have seen a surge in new operators, namely California, Arizona, Nevada and Texas, meaning these states are considered hotspots for potential hospice fraud.Editor's Note: This article aptly names the deeply partisan “blame game” now playing out across many media outlets. Hospice fraud is not a partisan issue—it is a human one. When hospice is exploited, it erodes trust in a field built on compassion and dignity at life’s most vulnerable moments. Political finger-pointing may generate headlines, but it does little to solve the problem. Stopping hospice fraud requires accountability, strong oversight, and a shared commitment to protect patients—and the integrity of hospice care itself.
Oregon legislature passes bill Stop Bad Actors from Taking Advantage of Hospice Patients
03/10/26 at 03:00 AMOregon legislature passes bill Stop Bad Actors from Taking Advantage of Hospice Patients OregonLegislature.gov, Salem, OR; Press Release, Office of Senator Deb Patterson; 3/4/26 Hospice began as a movement to provide end-of-life care for terminally ill patients. However, corporate investors have started buying up hospice agencies and reducing services as they try to maximize profits. In some states, this has led to patterns of fraud, abuse, and neglect. Today, the Oregon Legislature passed the Protecting the Dying Act (SB 1575), which enhances state oversight of hospice agencies. ... Senator Patterson began work on this issue after it was brought to her by a local hospice provider in her community. Iria Nishimura, CEO of Willamette Vital Health in Salem, said, “Hospice serves patients and families during the most vulnerable time of life. The state has a responsibility to ensure that providers entering this field are qualified, ethical, and capable of deliver high-quality care.”
LA’s shameful hospice fraud crisis laid bare — and the tens of millions of your cash going down the drain
03/05/26 at 01:00 AMLA’s shameful hospice fraud crisis laid bare — and the tens of millions of your cash going down the drainNY Post; by Benjamin Brown; 3/1/26A network of hundreds of hospices are under investigation for allegedly ripping tens of millions of dollars from taxpayers in Los Angeles Country and across California. The Centers for Medicare and Medicaid Services is now actively cutting off payments to suspicious operations across Los Angeles, which is home to almost half of America’s end-of-life care providers.Notible mentions: Dr. Mehmet Oz, Dr. Ira Byock, and Sheila Clark.
Infographic: Compliance you can’t ignore
03/03/26 at 03:00 AMInfographic: Compliance you can’t ignore HR Daily Advisor Staff; by HR Daily Advisor Staff; 1/21/26 In the age of AI and remote work, HR leaders are dealing with tough compliance challenges, and they must have strategies to keep everything straight and in order for their organizations. Want to learn best practices and what HR leaders should do right now to deal with compliance issues such as AI governance, leave laws, classifying workers, remote and global jurisdictional risk, data privacy, and employee monitoring/surveillance? Check out our infographic to ensure you’re as proactive as possible.
Husch Blackwell’s Meg Pekarske: Hospices facing ‘huge pendulum shift'
03/02/26 at 02:00 AMHusch Blackwell’s Meg Pekarske: Hospices facing ‘huge pendulum shift' Hospice News; by Holly Vossel; 2/27/26 The hospice space has seen waves of regulatory changes in recent years that are affecting sustainable access, according to Meg Pekarske, partner at the law firm Husch Blackwell. Ensuring program integrity and quality will take an overhaul of hospice regulation. Pekarske, a hospice and health care attorney, is retiring with more than 25 years of legal experience, effective March 31. She recently sat down with Hospice News to reflect on the most significant regulatory changes impacting the future scope of hospice care delivery. Greater consideration is needed around a potential revamp of the Medicare Hospice Benefit, Pekarske said.
Medicare, Medicaid, and Children's Health Insurance Programs: Nationwide Temporary Moratoria on enrollment of durable medical equipment, prosthetics, orthotics, and supplies (DMEPOS) supplier medical supply companies
02/27/26 at 03:00 AMMedicare, Medicaid, and Children's Health Insurance Programs: Nationwide Temporary Moratoria on enrollment of durable medical equipment, prosthetics, orthotics, and supplies (DMEPOS) supplier medical supply companies Federal Register; by the Centers for Medicare & Medicaid Services; 2/27/26 Summary: This notice announces the imposition of a 6-month nationwide moratorium on the Medicare enrollment of DMEPOS supplier medical supply companies. Background: ... Under the Patient Protection and Affordable Care Act (Pub. L. 111-148), as amended by the Health Care and Education Reconciliation Act of 2010 (Pub. L. 111-152) (collectively known as the Affordable Care Act), Congress provided the Secretary with new tools and resources to combat fraud, waste, and abuse in Medicare, Medicaid, and the Children's Health Insurance Program (CHIP).
The trends—and traps—shaping 2026
02/26/26 at 02:00 AMThe trends—and traps—shaping 2026 JD Supra; by Morgan Lewis; 2/24/26 The global business landscape in 2026 is marked by accelerating political realignments, intensifying regulatory oversight, rapid technological maturation, and shifting market expectations. In this year’s report, our lawyers assess the trends and emerging risk areas that organizations across industries and regions are likely to encounter in 2026 and beyond. Drawing on insights from a dynamic array of developments—from the business repercussions of geopolitical recalibration to the continued expansion of transformative technologies—this compilation delivers a forward-looking perspective designed to support informed strategy and purposeful decision-making for businesses worldwide.
Apex Hospice, ex-director settle False Claims retaliation suit
02/24/26 at 03:00 AMApex Hospice, ex-director settle False Claims retaliation suit Bloomberg Law; by Daniel Seiden; 2/20/26 Illinois-based Apex Hospice & Palliative Care Inc. and its former medical director reached a confidential settlement of a False Claims Act suit alleging the company fired her in retaliation for calling attention to Medicare fraud, a federal district court said Friday. Janice Makela’s suit is dismissed without prejudice, Chief Judge Virginia M. Kendall of the US District Court for the Northern District of Illinois said in an order.
14th Annual healthcare fraud & abuse review 2025
02/20/26 at 03:00 AM14th Annual healthcare fraud & abuse review 2025 JD Supra; by Theresa Androff, Cody Anthony, Denise Barnes, Michael Bassham, Angela Bergman, Justin Brown, Nathan Brown, J. Taylor Chenery, Hannah Choate, Matthew Curley, John Eason, Charlotte Elam, Emily Ann Farmer, Lindsey Brown Fetzer, Emily Fountain, Lauren Gaffney, Scott Gallisdorfer, Anna Grizzle, Becca Guthrie, Stephanie Higdon, Brian Irving, Stewart Kameen, Travis Lloyd, Andrés Martinez, Garrah Carter-Mason, William Mathias, Jennifer Michael, Jack Nelson, Benjamin Peterson, Brianna Powell, Lisa Rivera, Brian Roark, Molly Ruberg, Taylor Sample, Reagan Schmidt, Ben Schrader, Danielle Sloane, Hannah Webber; 2/17/26 Bass, Berry & Sims is pleased to bring you our 14th annual Healthcare Fraud & Abuse Review in which we cover significant civil and criminal enforcement issues for healthcare providers. Please see full publication below for more information. ...
Medicare crackdown on hospice affiliations threatening providers
02/19/26 at 03:00 AMMedicare crackdown on hospice affiliations threatening providers Bloomberg Law; by Patric Hooper, Jordan Kearney, and Maydha Vinson; 2/18/26 A new federal enforcement trend is sending shockwaves through California’s hospice sector and beyond. Health care providers are discovering that their Medicare enrollment, and often their entire practice, can be jeopardized simply because of whom they once worked with, not because of anything they personally did. The Centers for Medicare and Medicaid Services calls it affiliation. Under federal regulations, CMS or its contractors can revoke a provider’s Medicare enrollment if the agency determines that an affiliation poses an “undue risk” of fraud, waste, or abuse.
Oregon considers bill to stop hospice scammers from entering state
02/17/26 at 03:00 AMOregon considers bill to stop hospice scammers from entering state Hospice News; by Jim Parker; 2/13/26 State lawmakers in Oregon are mulling a bill designed to combat hospice fraud. Senate Bill 1575 would prevent hospices that have committed fraud or provided substandard care in other states from setting up shop in Oregon. If enacted, the Oregon Health Authority, a state agency, would examine the history of companies seeking to open hospices before approving a license, including Consumer Assessment of Healthcare Providers and Systems (CAHPS) survey results, among other information.
Florida’s hospice system works because standards matter | Opinion
02/16/26 at 03:00 AMFlorida’s hospice system works because standards matter | Opinion News-Press; by Jaysen Roa; 2/13/26 Key Points
Oregon lawmakers consider tightening hospice oversight over fraud, abuse concerns
02/12/26 at 03:00 AMOregon lawmakers consider tightening hospice oversight over fraud, abuse concerns The Lund Report; by Lynne Terry; 2/10/26For the second year in a row, Oregon lawmakers are considering a bill designed to tighten state oversight of the hospice industry, which has been rife with fraud and abuse. Senate Bill 1575 aims to block new hospices from Oregon that have committed fraud or neglected patients in other states. It would require the Oregon Health Authority to review the past history of companies seeking to operate new hospices, ensure they have enough financing to serve patients for about a year and run criminal background checks on the proposed administrator, medical director and any owners with more than a 5% stake in the company.Editor's Note: Dr. Cordt Kassner--owner/publisher of this newsletter and owner/data expert for Hospice Analytics, was interviewed for this article. His data provides insight on Oregon's hospice provider growth, for-profits and non-profits, and comparisons with nearby states.
FWA Insights: The top fraud schemes of 2025
02/12/26 at 03:00 AMFWA Insights: The top fraud schemes of 2025 COTIVITI | Fraud, Waste, and Abuse; by Erin Rutzler, AHFI, CFE, CHC, CPC; 2/10/26 Throughout 2025, federal and state authorities uncovered schemes involving everything from unnecessary lab tests to fraudulent telehealth services and hospice care. These cases highlight the evolving tactics bad actors use to exploit vulnerabilities—and the urgent need for payers to stay vigilant. While the methods vary, the goal is the same: profit at the expense of patients and payers. In our latest edition of FWA Insights, we break down three major categories of FWA—lab testing, home health and hospice, and telehealth—with real-world examples from 2025 and recommendations for mitigating these risks.
Woman who allegedly stole $3.2m from Medicare boasted about lavish home
02/10/26 at 03:00 AMWoman who allegedly stole $3.2m from Medicare boasted about lavish home Complex; by Helen Storms; 2/7/26 A California woman has been arrested after allegedly stealing $3.2 million from Medicare as part of an elaborate hospice scam. The woman, identified as 49-year-old Flor Mora, shared photos of the lavish $4 million dream home she bought from the funds she is accused of stealing before being hit with felony charges. Mora purchased the luxurious seaside home located in the Carmel Highlands in Monterey County, California, in November 2025. It would later be featured in the Washington Street Journal and even voted the House of the Year. Little did voters know that Mora had paid for the early 20th-century style home with reportedly stolen funds.
California AG Bonta charges 7 in Monterey County over hospice fraud scheme totaling $3.2m
02/09/26 at 03:00 AMCalifornia AG Bonta charges 7 in Monterey County over hospice fraud scheme totaling $3.2m KSBW 9 Action News, Monterery, CA; by Ricardo Tovar; 2/6/26 California Attorney General Rob Bonta announced that arrests have been made and felony charges filed against seven people in connection with an alleged hospice fraud scheme filed in Monterey County. The total loss to Medi-Cal and Medicare is estimated to be $3,211,419.79, according to Bonta's office. The complaint alleges that the conduct occurred from approximately April 1, 2016, through June 1, 2024 — a period of roughly 8 years and 2 months.
Forefront Living Hospice agreed to pay $1.9 million for allegedly violating the Civil Monetary Penalties Law by submitting claims for services that identified the incorrect provider or were performed by non-enrolled or incorrect providers
02/09/26 at 03:00 AMForefront Living Hospice agreed to pay $1.9 million for allegedly violating the Civil Monetary Penalties Law by submitting claims for services that identified the incorrect provider or were performed by non-enrolled or incorrect providers HHS-OIG, U.S. Government; 1/30/26 After it self-disclosed conduct to OIG, Forefront Living Hospice d/b/a Faith Presbyterian Hospice and d/b/a T. Bonne Pickens Hospice and Palliative Care Center (Forefront), Dallas, Texas, agreed to Pay $1,959,718.74 for allegedly violating the Civil Monetary Penalties Law. OIG alleged that Forefront billed for: (1) hospice services provided by "attending physicians" who were nurse practitioners, but billed as if they had been performed by physicians; and (2) "attending physician" services performed by an attending physician who was not the physician chosen by the patient or where the provider was not properly enrolled in Medicare.
Vance to lead sweeping anti-fraud task force investigating California
02/06/26 at 03:00 AMVance to lead sweeping anti-fraud task force investigating California Before It's News; Press Release; 2/4/26 Vice President JD Vance is poised to chair a new White House task force aimed at rooting out potential fraud and abuse in government programs in California, according to CBS News. Andrew Ferguson, chairman of the Federal Trade Commission, is expected to serve as the task force’s vice chairman and handle day-to-day operations, CBS News reports. President Donald Trump is anticipated to issue an executive order in the coming days to formally establish the group, the news outlet said.
