Nevada Health Authority Slams Door on New Hospice, Home Health Licenses and Medicaid Enrollments to Crush Rampant Fraud

In a move to protect Nevada taxpayers and legitimate patients, the Nevada Health Authority today announced a temporary pause on issuing new state licenses for hospice and home-health providers, along with a moratorium on new enrollments in Nevada Medicaid for these services. The action, which requires federal approval, will remain in effect for at least six months while officials conduct a sweeping validation of current providers.

The decision comes amid a national explosion of hospice and home-health fraud that has drained billions from Medicare and Medicaid programs. Fraudulent operators often using “ghost” offices, billing for services never rendered, and diverting funds offshore, have turned end-of-life and in-home care into a lucrative scam. Nevada is now drawing a hard line to prevent the same schemes that plagued California from taking root in the Silver State. 

Governor Joe Lombardo threw his full support behind the move, 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 most. I support the Nevada Health Authority’s decisive action to identify fraudulent providers, strengthen accountability, and work alongside law enforcement to pursue criminal prosecutions wherever wrongdoing is found. Nevada will not tolerate fraud, waste, or abuse in our public programs.”

This announcement builds directly on efforts Governor Lombardo initiated earlier this year, including the creation of a state task force working in close coordination with the U.S. Attorney’s Office in Nevada and federal partners as part of the DOJ’s new West Coast Health Care Fraud Strike Force. 

That multi-agency initiative launched in late April and targeting Arizona, Nevada, and Northern California, was formed in response to surging fraud schemes migrating across state lines. Nevada has also stood up its first-ever Medicaid Inspector General within the Health Authority and multiple internal task forces focused on licensing and program integrity.

Nevada Medicaid Director Ann Jensen emphasized the urgency:

“This temporary pause across state licensing and Medicaid is necessary to allow us time to get a handle on Medicaid billing fraud in Nevada for these important services. Without it, we will continue to lose out on the time needed to stop millions in scarce public resources from being stolen from bad actors who are posing as legitimate, licensed hospice and home health providers.”

To avoid harming access in rural and underserved areas, the state is allowing certain new providers to apply for exemptions if they can demonstrate they will improve care in those communities.

Over the next six months, state staff will perform extensive onsite reviews of every Medicaid-enrolled hospice and home-health provider. Any red flags will trigger immediate referrals to the Nevada Attorney General, federal authorities, and law enforcement for criminal investigation and prosecution.

Hospice and home-health fraud has become one of the fastest-growing scams targeting federal health programs. In California, a state and federal crackdown drove fraudulent operators eastward into Nevada and Arizona. Ghost agencies, inflated billing, and services never provided have cost taxpayers hundreds of millions in Los Angeles County alone, with similar patterns now appearing in neighboring states.

CMS Administrator Dr. Mehmet Oz has warned that “systematic hospice fraud in LA is spreading to Las Vegas,” highlighting the direct migration of these schemes across state lines. 

Last month, the Trump administration announced that the federal government is deferring $1.3 billion in Medicaid funds slated for California due to the state’s ongoing failure to tackle fraud in its Medi-Cal program. 

Earlier this year, Governor Lombardo publicly applauded the Trump administration’s federal crackdown, including the Vice President’s Task Force to Eliminate Fraud and Dr. Oz’s directives to states. 

Nevada’s response has been proactive: expanding program-integrity efforts, creating the Medicaid Inspector General position, and aligning state licensing with federal enforcement priorities. 

Recent high-profile cases, including $1.1 billion Medicaid fraud indictments in Nevada and Arizona, underscore why immediate action is essential.

The Nevada Health Authority’s June 5 announcement (see below) is the latest chapter in a coordinated push at the state and federal levels to reclaim control of Medicaid and Medicare from criminals. For Nevadans who rely on these services, especially in rural communities, today’s pause is framed as a necessary safeguard to ensure that taxpayer dollars actually reach those who need care, not offshore accounts.

The California Globe will continue to monitor the six-month review process and any resulting prosecutions. Whistleblowers with information on fraudulent providers are encouraged to contact the Nevada Health Authority or federal authorities.