Federal agents have arrested a married couple accused of fraudulently billing Medicare $7.45 million while operating a California hospice that reportedly had an unusually high number of survivors. Authorities said the FBI conducted an early morning raid on the home of physician Gladwin Gill and psychologist Amelou Gill, who together operate 626 Hospice, also known as St. Francis Palliative Care Center.Hospice’s high survival rates are often viewed by investigators as a warning sign of fraud because most people enter hospice in the final stages of a terminal illness. Previous fraud cases have involved operators using false or stolen identities to obtain federal palliative care reimbursements.This is the first in a series of arrests planned by federal officials, CBS News reported. FBI SWAT officers conducted the operation at a residential complex in San Dimas, California. Also in attendance was Dr. Muhammad Oz, the Trump appointee who oversees the federal Medicare system.Bill Essayli, the U.S. attorney for the Central District of California, told reporters that 15 defendants are being named in the broader fraud investigation, more than half of whom have been charged with hospice fraud. Some of those charged have gone to jail and allegedly collaborated with outsiders to commit further fraud.“We are enforcing a zero-tolerance policy against criminals who defraud American taxpayers,” Essaly said.“The defendants arrested this morning, accused of stealing millions of dollars in health care benefits, were caught and now face years in federal prison,” he added.Los Angeles County investigators have been examining hospice and medical records for months to identify providers who have raised fraud red flags following a 2022 state audit. The review found that more than 700 of the county’s roughly 1,800 hospices raised multiple warning signs. These include low patient volumes, exorbitant bills, staff sharing among multiple companies and patients being discharged alive despite being classified as terminally ill.Another indicator of potential fraud is multiple hospices clustered at a single address. One office building alone was found to house 89 registered hospice providers, with patient advocate Sheila Clark describing the location as “ground zero” for Medicare hospice fraud.The Republican-led House Oversight Committee recently launched an investigation into “rampant hospice fraud,” asking California Gov. Gavin Newsom to provide documents on oversight and internal controls to prevent fraud in federally funded hospice programs.
