Hospice Fraud Scheme
A major hospice fraud scheme defrauded the state of $267 million, targeting Medicare hospice services
A major hospice fraud scheme was dismantled by California Attorney General Rob Bonta, who announced the state had been defrauded of $267 million, as reported on April 9, 2026, in Los Angeles. This scheme is part of a larger problem of healthcare fraud, which includes a recent $906 million wound care fraud case, as detailed in an article on wound care fraud that highlights the ongoing issue of commercial group health plans being vulnerable to similar scams. The hospice fraud scheme involved targeting elderly Medicare patients, many of whom were terminally ill, to apply unnecessary and expensive allografts to their wounds, as seen in a case involving a nurse practitioner named Yukee, who owned four mobile wound clinics in different states, as reported by luxury cars and jewelry seized.
The hospice owner allegedly fraudulently enrolled patients who were not terminally ill and paid illegal kickbacks of up to $3,000 per person to a funeral home employee in exchange for dead Medicare beneficiaries' information, as part of a larger Medicare Fraud Scheme that has been ongoing. This case is similar to other healthcare fraud cases, such as the $6.5 billion healthcare fraud takedown announced by the DOJ, which included a $6.5B fraud takedown that involved multiple individuals and companies. The use of fake tests, excessive pills, and pricey skin grafts is a common tactic used in healthcare fraud, as explained in an article by The Epoch Times that details the various ways fraud is committed in the healthcare system.
In another case, four individuals were charged in a $3 billion Medicare fraud tied to a Russian crime network, which involved withdrawing millions of dollars in fraudulent Medicare payouts and wiring the money to overseas accounts, as reported in a case similar to the Feeding Our Future Fraud scheme. The DOJ has been actively working to combat healthcare fraud, including the recent historic $6.5 billion healthcare fraud takedown, which included individuals from Iowa, as part of a larger effort to crack down on healthcare fraud and protect Medicare beneficiaries.
As I reflect on the recent hospice fraud scheme, I am compelled to speak out against this egregious abuse of trust. My thesis is that the current lack of oversight and accountability in the hospice industry enables these fraudulent activities, causing harm to vulnerable patients and their families. If nothing changes, the perpetrators of these schemes will continue to win, lining their pockets with ill-gotten gains while exploiting those in need of end-of-life care. Meanwhile, taxpayers and legitimate healthcare providers will bear the burden of these fraudulent activities, emphasizing the need for urgent reform to protect the integrity of our healthcare system.
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