Hospice Purge Hits Legit Providers
Hundreds of hospice suspensions ensnare innocent providers amid anti-fraud push
A recent crackdown on hospice care providers has resulted in the suspension of hundreds of companies, with many legitimate businesses being caught in the crossfire. The Trump administration's efforts to combat fraud in the healthcare system have been underway since 2019, with a particular focus on hospice care providers. According to reports, the Centers for Medicare and Medicaid Services (CMS) has suspended payments to over 1,600 hospice providers, citing concerns over fraudulent activity.
The purge has been met with criticism from lawmakers and industry leaders, who argue that the administration's approach is too broad and is unfairly targeting legitimate providers. On June 10, 2026, Senator Ron Wyden (D-Ore) sent a letter to CMS Administrator Seema Verma, expressing concerns over the impact of the suspensions on patients and families who rely on hospice care. Wyden cited the case of Hospice of the Valley, a non-profit provider in Arizona that was suspended despite having a spotless record with CMS.
The hospice industry as a whole has been under scrutiny in recent years, with the Department of Health and Human Services' Office of Inspector General estimating that Medicare loses over $1 billion annually to hospice care fraud. However, many argue that the current approach is not effectively distinguishing between legitimate and fraudulent providers. The National Hospice and Palliative Care Organization has reported that the suspensions have resulted in over $100 million in lost revenue for legitimate providers, with some companies facing financial ruin as a result.
As the situation continues to unfold, lawmakers are seeking input on the effectiveness of the laws aimed at protecting patients from surprise medical bills. The Congressional Budget Office has requested feedback from stakeholders on the implementation of the No Surprises Act, which was signed into law in December 2020. The law, which aims to protect patients from unexpected medical bills, has been hailed as a major step forward in patient protection, but its implementation has been marred by controversy and confusion. With the hospice purge continuing to make headlines, it remains to be seen how the administration will balance its efforts to combat fraud with the need to protect legitimate providers and the patients they serve.
As I reflect on the current state of hospice care, I firmly believe that the recent purge of providers is having a devastating impact on legitimate organizations. In my opinion, the crackdown on fraudulent hospice providers has inadvertently targeted law-abiding establishments, causing them to suffer financially and reputationally. If nothing changes, it's clear that insurance companies and government agencies will be the winners, as they will continue to reap the benefits of reduced payouts and increased regulatory control, while patients and families will be left to suffer from reduced access to quality end-of-life care.
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