California Hospice With 97% Survival Rate Accused of $7.45 Million Medicare Fraud

WASHINGTON – Federal agents targeted a California hospice that reported a staggering 97% patient survival rate, accusing it of defrauding Medicare of $7.45 million by enrolling patients who were not terminally ill.

The facility, one of 221 hospice and healthcare providers suspended in the Los Angeles area last week, is the latest high-profile example of systemic fraud in the industry uncovered by the Trump administration’s Fraud Task Force.

Prosecutors allege the hospice billed Medicare for daily per-patient payments for individuals who were healthy enough to live for years rather than months. Medicare hospice reimbursement is based on the assumption that patients have a life expectancy of six months or less. A 97% survival rate is statistically impossible for legitimate hospice care and stands in sharp contrast to the national average of roughly 25% six-month survival.

The Trump administration’s interagency task force, chaired by Vice President JD Vance, has identified California as one of the worst states for hospice and healthcare fraud. Officials say the state has seen billions in improper Medicare and Medicaid payments in recent years. The raids last week resulted in multiple arrests and immediate suspensions across Los Angeles County.

Hospice fraud has become a major vulnerability in federal entitlement programs. Providers can earn substantial daily payments simply by keeping patients enrolled, creating a strong financial incentive to enroll ineligible individuals. Cases nationwide have involved patients who were still working, traveling, or even participating in sports while listed as terminally ill.

This particular California case is part of a broader national crackdown. The task force was created by executive order in March 2026 specifically to combat waste, fraud, and abuse in programs such as Medicare, Medicaid, and SNAP. Vance has repeatedly highlighted California as a priority target, noting that fraud there dwarfs problems uncovered in other states.

The hospice in question has not issued a public statement. The developments underscore how the current system enables bad actors to exploit end-of-life care programs for massive profit while legitimate patients and taxpayers foot the bill. The Trump administration says more enforcement actions are expected as investigations expand.