Issues surrounding Medicare fraud are “top of mind” for hospice providers, according to Jim Melancon, senior vice president of government affairs at Aveanna Healthcare Holdings (Nasdaq: AVAH).

Reports of hospice fraud have proliferated in recent years, particularly in the four hotbed states of California, Arizona, Nevada and Texas. Fraudulent operators have used a slew of illegal or unethical tactics, such as enrolling Medicare beneficiaries in hospice care without their knowledge or without providing services.

“We want to get rid of the fraud in the industry that hurts everyone. Certain bad actors will complicate funding. We’re seeing that on home health. We’ve been seeing that in hospice,” Melancon told Hospice News’ sister site Home Health Care News. “So that’s one of the things that we as an industry really want — compliant, high quality service to be provided.”

Atlanta, Georgia-headquartered Avenna’s geographic footprint spans 34 states. The company provides adult and pediatric hospice, home health private duty nursing and medical solutions, among other services.

Aveanna’s overall revenue reached $559.2 million during the first quarter, a 14% year-over-year increase. Its adjusted EBITDA for Q1 was $67.4 million, a 93.1% rise compared to the same period in 2024.

One principal tactic among fraudulent hospices is maintaining multiple provider numbers, hospice leaders told Hospice News on background. This enables perpetrators of fraud to move patients between the various hospices they own. Another common practice is transferring patients who have reached the payment cap to avoid recoupment.

Scammers have also offered individuals hundreds of dollars in exchange for their Medicare identification beneficiary numbers. They have also offered free cooking and cleaning services, medical equipment, TVs, furniture and home appliances, among other things in exchange for a beneficiary’s Medicare number. Fraudsters have gone door-to-door, communicated via text, calls and emails, and even approached seniors at bingo halls, community centers and other locations.

The actions pose risks for legitimate providers, including the erosion of trust among the public, according to Melancon.

“There is no place for fraud, plain and simple,” Melancon said. “It makes our job harder every day, and we don’t want there to be this lack of trust in any of the services that we have,” Melancon said.”

Home Health Care News Senior Reporter Joyce Famakinwa contributed to this report.