Congress launches investigation into California hospice fraud, citing millions in taxpayer losses
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House Republicans announced Monday that Congress will mount an investigation into "rampant hospice fraud," alleging that potentially tens of millions in taxpayer funds may have been lost in improper payments to Southern California companies. In:
House Republicans announced Monday that Congress will mount an investigation into "rampant hospice fraud," alleging that potentially tens of millions in taxpayer funds may have been lost in improper payments to Southern California companies.
The Republican-led House Oversight Committee, which has the authority to investigate, has sent a letter to California's Democratic governor, Gavin Newsom, asking for documents related to the state's "oversight and internal controls to detect and prevent fraud for its federally funded hospice programs."
"Recent reporting has revealed alarming evidence of fraudulent activity in California's hospice programs, including agencies overbilling Medicare and fraudulently enrolling beneficiaries without their knowledge," committee members wrote, citing a recent CBS News investigation.
The CBS News report examined business and financial records of every hospice currently operating in Los Angeles County, looking for the warning signs that a 2022 state audit identified as potential indicators of fraud.
The CBS News analysis revealed that over 700 of the roughly 1,800 hospices in LA County triggered multiple red flags for fraud as defined by the state.
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