In a significant crackdown on hospice fraud within the state, California authorities have cancelled over 280 hospice licenses over the past four years. This move comes as part of a broader initiative by Governor Gavin Newsom's administration to combat corruption and protect the well-being of patients in need of end-of-life care. While the Trump administration appears to claim strides in addressing hospice fraud, California has been actively pursuing wrongdoers under a moratorium on new hospice licenses that Newsom signed into law in 2021 and extended through 2024 with AB 177.
With a seemingly contradictory stance from the Trump administration, having rolled back measures for federal oversight last year, Newsom didn't hold back, proclaiming, "It’s rich to see the Trump administration suddenly talking tough on hospice fraud after pulling back federal oversight just last year. California didn’t wait — we’ve identified and cracked down on hospice fraud for years, taking real action to protect patients and taxpayers." This comment was highlighted in a Governor’s office press release.
California's stern approach has included revocations of licenses by the California Department of Public Health (CDPH), investigations into suspect activities, and the formation of a Hospice Fraud Task Force. The task force is a combined effort from several state agencies such as the California Health & Human Services Agency (CalHHS), Department of Health Care Services (DHCS), and the California Department of Social Services (DSS), alongside the California Department of Justice’s Division of Medi-Cal Fraud and Elder Abuse (DMFEA). Collectively, they have facilitated information sharing and tightened enforcement, leading to significant actions against fraudulent entities.
The Attorney General Rob Bonta has similarly taken a firm stance, declaring, "Our message is simple: hospice care must be rooted in compassion, not corruption. This is not a new fight for the California Department of Justice. For years, we have been at the forefront of identifying and addressing hospice fraud, and we do it well. That’s why my office launched an initiative dedicated to educating the public and providing clear, accessible reporting resources for individuals and families who may have been affected by hospice fraud." A full statement was obtained by the Governor's office.
Efforts to combat fraud aren't solely punitive; they include preventive measures. Stricter hospice claiming rules and improved fraud detection systems have been implemented by DHCS to "identify irregularities and trigger investigations, enabling rapid containment before improper payments are made." When fraud is detected, decisive steps are taken swiftly to stop payments and to support potential prosecution. Citizens suspecting fraud are encouraged to report it immediately via a hotline, email, or an online platform.
The intensive protective actions of the Newsom administration and state agencies mark a stark contrast with the reduced federal oversight from the Trump administration, highlighting a commitment to maintaining integrity and trust in California's healthcare systems.
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