Hospice with 97% survival rate accused of defrauding Medicare for $7.45M

Federal authorities arrested individuals associated with a hospice facility accused of defrauding Medicare of $7.45 million, according to officials who told CBS News the arrests were the first in a planned series Thursday. The hospice, which reported a 97% survival rate—an unusual statistic for end-of-life care facilities—became the subject of a federal investigation into billing practices. The unusually high survival rate likely raised red flags with investigators, as it suggests patients may have been misclassified or improperly enrolled in hospice care to generate fraudulent Medicare claims. This case appears part of a broader crackdown on hospice fraud, with federal officials indicating additional arrests were planned. Medicare fraud targeting hospice programs has become an increasing concern for federal law enforcement, as the reimbursement structure can create incentives for improper billing.