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What A CMS Fraud Expert Learned By Caring For Her Parents In Hospice

After placing both parents in hospice, former CMS integrity leader Dara Corrigan offers a firsthand look at hospice fraud, policy failures, and practical solutions.

Forbes 3 min read 7/10
What A CMS Fraud Expert Learned By Caring For Her Parents In Hospice
Key Takeaways
  • Dara Corrigan, former CMS deputy administrator for program integrity, managed federal anti-fraud efforts before caring for both parents in hospice.
  • Medicare spent $23.1 billion on hospice in 2023, up from $15.3 billion in 2018, with the OIG identifying billions in improper payments.
  • A 2022 GAO report found that 1 in 5 hospices had at least one deficiency related to patient harm, including failure to provide required services.
  • For-profit hospices now account for 73% of all providers, linked to higher rates of aggressive marketing and upcoding for extended stays.
  • Corrigan recommends replacing fee-for-service with a value-based payment model that rewards quality outcomes rather than length of stay.
A former top CMS fraud investigator learned the painful truth about hospice fraud not from case files, but from the bedside of her own dying parents. Dara Corrigan, who once led Medicare integrity efforts at the Centers for Medicare & Medicaid Services, placed both her parents in hospice care in recent years. What she witnessed firsthand has given her a new perspective on the systemic failures and fraud that plague end-of-life care in America. Her story, shared in a Forbes essay, exposes the gap between policy intentions and real-world patient experiences.

Hospice care is a $20 billion industry funded largely by Medicare, but it has long been a target for fraud. Previous investigations by the Department of Health and Human Services Office of Inspector General have found aggressive marketing, unnecessary enrollments, and billing for services not rendered. The Government Accountability Office has flagged hospice as a high-risk area for improper payments, with an estimated $1.5 billion in questionable claims annually. Corrigan spent her career building safeguards against such abuse. Now she has seen the other side.

Corrigan describes the difficulty of finding honest, compassionate hospice providers. She recounts specific administrative hurdles: confusing paperwork that delays care, lack of transparency about what services are covered, and a payment system that incentivizes long stays rather than quality outcomes. She notes that while CMS has tried to tighten rules, bad actors find ways to exploit loopholes. "The system is broken for patients and providers alike," she writes, urging policymakers to listen to frontline caregivers and families.

Key details from her account include the emotional toll of navigating care while grieving, the realization that even well-intentioned regulators miss on-the-ground realities, and the urgent need for better oversight of for-profit hospice chains. Corrigan points to successful models like community-based nonprofits that prioritize patient dignity. She also highlights that hospice fraud prevention requires more than enforcement—it demands cultural change in how we approach end-of-life care.

Analysis: Corrigan's dual perspective—as a regulator and as a daughter—is rare and valuable. It highlights that even well-intentioned policies can create perverse incentives. Informed observers at the Kaiser Family Foundation and Brookings Institution argue that without fundamental reform, hospice fraud will continue to drain Medicare and harm vulnerable patients. The aging baby boomer population will only intensify these pressures.

Outlook: Corrigan advocates for several practical solutions: clearer eligibility criteria, mandatory data sharing between hospices and referring physicians, and increased funding for oversight. She also calls on patients and families to become more proactive in choosing hospice providers—asking hard questions about ownership, staffing ratios, and patient outcomes. The next few years will see increased congressional scrutiny as Medicare costs rise and the population ages. Corrigan's testimony and the growing body of investigative journalism on hospice fraud prevention may finally force the systemic changes needed to protect the dying and their families.

Frequently Asked Questions

Hospice fraud involves deceptive practices by hospice providers to improperly bill Medicare, such as enrolling patients who are not terminally ill, falsifying records of services provided, or extending stays unnecessarily to collect higher payments.

CMS uses data analytics, whistleblower tips, audits, and site visits to identify suspicious billing patterns. However, as former CMS leader Dara Corrigan notes, oversight often lags behind new schemes, and family members are crucial in reporting irregularities.

After caring for her parents, Corrigan found that even well-regulated hospices can lack transparency about services, and that for-profit chains often prioritize profit over patient dignity. She advocates for value-based payment models to align incentives with quality.

Common types include enrolling ineligible patients, billing for services not rendered, upcoding to higher payment levels, and providing inadequate care while claiming full reimbursement. The OIG found that 40% of hospices had at least one potential fraud indicator.

Families should research provider ownership and reputation, ask about staffing ratios and patient outcomes, review Medicare summaries for unusual charges, and report suspicious practices to the HHS OIG hotline. Corrigan emphasizes staying actively involved in care decisions.

Policy experts recommend shifting from fee-for-service to bundled payments, requiring public disclosure of quality metrics, increasing funding for program integrity, and mandating third-party assessments before hospice enrollment for patients with ambiguous prognoses.

Original source

www.forbes.com

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