Nevada Proposes Six-Month Moratorium on New Hospice and Home-Health Licenses Amid Fraud Investigation

Nevada is taking decisive action against suspected fraud in its hospice and home-health sectors, with the Nevada Health Authority (search)Search term announcing a temporary pause on new state licenses for these providers and a moratorium on new enrollments into the state's Medicaid program. The proposal, which requires federal approval, is slated to last at least six months while authorities conduct extensive investigations.

"Fraud in hospice and home-health services has garnered recent national attention with stories of high-dollar crimes from illegal Medicaid and Medicare billing activities and fake operations," the Nevada Health Authority (search)Search term stated in its press release. "This demonstrates the urgent need for decisive action to protect the front door to the Medicaid program and prevent further losses of taxpayer dollars."

The moratorium applies only to providers, not patients. A spokesperson for Gov. Joe Lombardo's office clarified that "patients can still apply for Medicaid." Prospective providers serving rural and underserved communities will be allowed to apply for exemptions from the Medicaid moratorium.

Statewide Reviews and Criminal Investigations Planned

Over the six-month period, state staff will conduct extensive onsite reviews of all Medicaid-enrolled hospice and home-health providers to identify any instances of potential billing and payment fraud requiring immediate attention. The effort includes close coordination with the Office of the Nevada Attorney General, federal partners, and law enforcement to initiate criminal investigations.

The stolen dollars can be hard to recover before the state can act, the release noted, underscoring the urgency of the proposed measures.

Political Divide Over the Proposal

Gov. Joe Lombardo, a Republican, endorsed the proposal, stating: "Protecting taxpayer dollars and preserving access to quality healthcare services for Nevadans requires us to confront fraud head-on. Bad actors who use hospice and home-health programs as vehicles to steal public funds are undermining care for those who need it the most."

However, Nevada Attorney General Aaron Ford, a Democrat campaigning to replace Lombardo, sharply criticized the move as a "despicable ploy of taking away dying Nevadans' health care to appease Donald Trump." Ford noted that his office had secured dozens of convictions related to Medicaid fraud and recovered approximately $41 million.

Lombardo's re-election campaign disputed Ford's characterization, stating: "The reality is that no Nevadan will lose their healthcare. This is just another attempt to manufacture a political talking point."

Providers Cite Longstanding Patient Neglect

Doctors and hospice providers in the Las Vegas Valley have praised the moratorium as long overdue. Dr. Timothy Beckett of Unified Hospice Care (search)Search term described cases where patients at other facilities were not given medication, lacked proper medical equipment, and went without care. "We've had patients wanting to switch to our hospice because they were signed up for a hospice and hadn't even seen a nurse for two weeks. There are horrible things that go on," Beckett said.

Karen Rubel, President and CEO of Nathan Adelson Hospice (search)Search term, reported a 400% increase in hospice care providers statewide following a similar moratorium enacted by California in 2022, with approximately 300 providers now operating in Clark County alone. Rubel detailed findings including multiple hospice companies registered at the same address and home healthcare patients who were signed up for hospice without their knowledge.

"When we hear that people have never seen a nurse, they haven't gotten their medications, those are big red flags," Rubel said. "That's the mindset: people are looking at the Medicare reimbursement as a way to make money and not provide good care."

Federal Coordination Underway

The state-level action aligns with broader federal efforts. The Centers for Medicare & Medicaid Services (search)Search term, in partnership with Vice President JD Vance's Anti-Fraud Task Force, late last month announced its own six-month moratorium on new hospice and home-health providers. Federal officials identified Nevada as one of half-a-dozen states with an "elevated fraud risk."

On April 30, the Department of Justice announced a West Coast Strike Force targeting fraudulent healthcare-related schemes in Nevada, Arizona, and Northern California. Nevada's First Assistant U.S. Attorney Sigal Chattah confirmed coordination with the FBI, the Department of Health and Human Services, and the Drug Enforcement Administration. "With each indictment and conviction, we are achieving justice for victims who were taken advantage of by these fraudsters," Chattah said.