BRYAN, Texas (KBTX) – Fraudulent hospice operators are billing Medicare for millions of taxpayer dollars in Texas, and some are enrolling patients who don’t even know they’re on service, according to testimony presented to state lawmakers.
Lisa McNair, president and CEO of Hospice Brazos Valley, testified before the Texas Senate Committee on Health and Human Services in April with research showing the number of hospices in Texas has nearly doubled since 2020. There are now more than 1,300 hospices operating in the state.
Investigators and advocates say some are billing Medicare for patients who were never appropriate for hospice or who don’t even know they’re enrolled.
McNair told KBTX that the fraud is draining taxpayer dollars and eroding trust in legitimate end-of-life care.
How the fraud works
McNair’s research found as many as 15 hospices operating out of a single building, all under…
Identity theft is the “foundational” fraud upon which many other crimes are built. It involves the unauthorized acquisition and use of a person’s personal identifying information (PII), such as an ID number, Social Security number, or passport details.
- How it works: Fraudsters obtain PII through data breaches, mail theft, or “social engineering” (tricking people into revealing details). Once they have this data, they can open new bank accounts, apply for credit cards or loans, and even receive medical treatment under your name.
- Synthetic Identity Fraud: A sophisticated variation where criminals combine real and fabricated information to create a completely new, “synthetic” person. This is particularly difficult to detect because there is no single victim to report the suspicious activity initially.
