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$600 million: Los Angeles hospices cut off over suspected fraud
Federal officials froze Medicare payments to hundreds of Los Angeles hospices and home health agencies in 2026.
Los Angeles
- Hospices with payments suspended, April 20264471
- Home health agencies suspended, April 2026231
- Suspected fraudulent spending≈$600M2
- LA hospices and home health agencies suspended by May≈8003
- Nationwide freeze on new hospice enrollment6 months from May 13, 20263
- Convictions so far████████████████
What happened
In April 2026 federal officials suspended Medicare payments to 447 hospices and 23 home health agencies in Southern California over about $600 million in suspected fraud. By May, CMS said it had suspended about 800 hospices and home health agencies in Los Angeles.
On May 13, 2026, CMS froze new Medicare enrollment for hospices and home health agencies nationwide for six months.
Why nobody caught it
- Hospices were enrolled first and checked later. CMS said its existing tools mostly act after enrollment.
How sure are we?
Officials stopped payment over suspected fraud. No one has been found guilty.
Payment suspensions are not convictions. They mean officials believe there is credible evidence of fraud.
Sources
- Hundreds of hospice providers suspended in Los Angeles over $600 million in suspected fraudWashington Examiner · Apr 15, 2026
- Medicare payment suspensions emerge as a key tool in federal anti-fraud efforts: California hospicesFoley & Lardner · Apr 28, 2026
- CMS announces moratorium on new Medicare enrollment for hospices and home health agenciesWilmerHale · May 21, 2026
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