Anaheim Woman Pleads Guilty to Submitting $2.2 Million in Fraudulent Hospice Care Claims to Medicare

An Orange County woman has pleaded guilty to submitting more than $2.2 million in fraudulent hospice care claims to Medicare for beneficiaries who were not terminally ill. Lynn Galbraith, 60, of Anaheim, pleaded guilty to one count of health care fraud and faces a statutory maximum sentence of 10 years in federal prison at her December 3 sentencing hearing.

According to her plea agreement, Galbraith was the co-owner and operator of Garden Grove-based Azure Hospice Care Inc. from September 2019 to July 2022, after which she became the company’s sole owner until February 2024.

During that time, she knowingly submitted claims for hospice services on behalf of beneficiaries who did not have a terminal illness with a life expectancy of six months or less. In submitting the false claims, Galbraith either knew the beneficiaries did not qualify for hospice or knew their medical records did not support a qualifying diagnosis and prognosis. She also failed to routinely coordinate with beneficiaries’ primary care physicians about their purported conditions or terminal prognoses.

In one instance, Galbraith submitted a claim to Medicare for $6,600 for hospice services provided to a beneficiary, knowing there was insufficient documentation to establish eligibility. In total, she submitted approximately $2,266,694 in false claims, of which Medicare paid approximately $2,140,606.

This case reflects the government’s sustained commitment to protecting Medicare from fraud, particularly schemes that exploit end-of-life care benefits for financial gain. The investigation was conducted by the HHS Office of Inspector General. Individuals with knowledge of similar hospice fraud or fraudulent billing practices are encouraged to consult experienced whistleblower attorneys to explore potential False Claims Act remedies.