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05/05/2026

Federal Fraud Enforcement Expands Again - What’s Different Now

Federal scrutiny of hospice and home health isn’t slowing down -  it’s evolving.

In the past two weeks, regulators have taken additional steps to strengthen enforcement, including launching a new West Coast Health Care Fraud Strike Force and continuing aggressive use of payment suspensions tied to suspected fraud activity.

What’s different this time

This isn’t just about more audits. The approach itself is shifting.

Federal agencies are coordinating enforcement across DOJ and HHS-OIG

Payment suspensions are being used earlier in investigations

Data signals like live discharge rates are driving reviews

Industry leaders are raising concerns that some enforcement actions may rely heavily on limited data points, which could unintentionally pull compliant providers into investigations.

Why it matters

Even if your organization is fully compliant, this environment creates real operational risk:

Payment suspensions can halt reimbursement during an investigation

Increased scrutiny can make referral sources more cautious

Increased audits and documentation requests add administrative burden 

Enforcement trends in other states often inform future national strategy

Ohio providers are already seeing increased oversight activity - this signals that trend is not slowing down.

What to do now

Review live discharge rates, length of stay, and utilization patterns

Ensure documentation clearly supports eligibility and certifications

Prepare for ADRs, audits, and potential payment holds

Align clinical and billing documentation

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