Healthy patients allegedly lured into $50M hospice scam as feds expose cash kickbacks and fake care

This material may not be published, broadcast, rewritten, or redistributed. ©2026 FOX News Network, LLC. All rights reserved. Quotes displayed in real-time or delayed by at least 15 minutes. Market data provided by Factset. Powered and implemented by FactSet Digital Solutions. Legal Statement. Mutual Fund and ETF data provided by LSEG. Feds arrested eight suspects in an alleged $50 million hospice fraud scheme, alleging fake patients, cash kickbacks and bogus Medicare billing. (Fox News Channel) A sweeping federal takedown in Los Angeles has exposed what prosecutors say is a brazen, multimillion-dollar scheme that turned end-of-life care into a cash grab, allegedly using people who weren’t even dying to rip off taxpayers out of more than $50 million. Eight defendants, including nurses, a chiropractor and a purported psychologist, were arrested in a crackdown targeting sham hospice operations and fraudulent medical billing schemes, according to the Justice Department. At the center of the case, hospice companies are accused of signing up healthy patients, paying kickbacks and pocketing millions from Medicare for treatment that was never needed or never provided. "We are enforcing a