Oregon Moves to Block Hospice Fraud Before It Starts as Lawmakers React to Hundreds of License Revocations in California
Oregon lawmakers hope to prevent corrupt hospice operators from gaining a foothold in the state before widespread acts of fraud are committed, as has been experienced elsewhere in the U.S.
The Senate Committee on Health Care has referred Senate Bill 1575 to the full Senate for consideration during the current short legislative session.
Hospice Fraud Has Led to California Revoking 280 Licenses
The Centers for Medicare and Medicaid Services reports rising concerns about hospice fraud, particularly in neighboring California, where the state revoked more than 280 hospice licenses over the past two years.
Source: California Governor press release citing CDPH and California DOJ actions, Jan 27 2026
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California state and federal investigators discovered that some for-profit hospices enrolled people and stole their identities without their knowledge, submitted fake Medicare claims, and neglected dying patients.
Apart from California, the Centers for Medicare and Medicaid Services has expanded its oversight program to Arizona, Georgia, Nevada, Ohio, and Texas, where high levels of documented fraud have been recorded.
| CMS item | What it means |
|---|---|
| States covered | Arizona / California / Nevada / Texas / Georgia / Ohio |
| Who counts as a new hospice | New Medicare enrollment / certain ownership changes / reactivation after deactivation |
| When it started | July 13 2023, with each provider getting its own effective date on or after that |
| What CMS does | Medical review of hospice claims, including prepayment review |
| How long it can last | 30 days to 1 year |
| How providers are notified | CMS mails a letter to the PECOS correspondence address with dates and conditions |
The chief sponsor of SB 1575 is Sen.Deb Patterson, D-Salem, who says the aim of the bill is to prevent the problems uncovered in other states before they appear in Oregon, where there are 75 operational hospice providers.
The New Licensing Process Could be Delayed by Up to Two Years
If passed, the bill will prohibit the Oregon Health Authority from issuing new hospice licenses for up to two years, during which time the agency must develop stricter screening standards. This will ensure that hospice providers are financially stable and that staff are qualified to care for patients during the last months of their lives.
Applicants must disclose any license suspensions, fraudulent activities, and all negative performance records in Oregon or other states.
All hospice shareholders with a minimum 5% ownership stake, senior management, and supervising physicians must undergo the screening process. The Oregon Health Authority will also have the right to conduct criminal background checks on people falling into this category.
The agency will have the authority to deny licenses, depending on the severity and frequency of past violations. This will include applicants who knowingly submit false statements. Licenses can also be suspended or revoked for false statements.
Concerns About the New Licensing Screening Process Have Been Raised
Proponents of SB 1575 argue that the legislation is necessary due to a rise in fraudulent activity within the hospice industry, while those against the bill argue that a slow licensing process could limit access to hospice care, particularly in rural areas.
However, there can be no argument about the state’s demographics. Oregon has an aging population with older people outnumbering children. More than a quarter of the state’s residents are 65 years and older.
Source: US Census QuickFacts Oregon / Oregon Health Authority licensed hospice list / CMS ownership transparency release
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SB 1575 will take effect immediately if passed by lawmakers.
Ownership Details of Medicare-Certified Hospices Are Now Transparent
Recent federal Medicare data publicly lists the direct and indirect owners behind every Medicare-certified hospice, giving Oregonians a simple way to establish if a local hospice is tied to a multi-state chain under a different name. The information includes the ownership name, type, address, and effective date.