Los Angeles hospice fraud reaches billions as Medicare providers scam federal system with fake companies

Ghost patients, sham companies, offshore owners and corrupt doctors. Auditors and prosecutors say hospice fraud in Los Angeles is off the charts, with providers scamming billions from taxpayers for patients that don't exist, poor care and no care.

"Hospice is crazy here," says Dr. Mehmet Oz, head of the Centers for Medicare and Medicaid Services. 

"You've got hospice that's grown seven-fold in the last five years. They represent about three and a half billion dollars of fraud, we believe...