LOS ANGELES — An Orange County hospice owner pleaded guilty Thursday to submitting more than $2.2 million in fraudulent Medicare claims for patients who were not terminally ill.
Medicare paid more than $2.1 million to her company based on the fraudulent claims, federal prosecutors announced Thursday.
Lynn Galbraith, 60, of Anaheim pleaded guilty to one count of health care fraud.
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- Defendant: Lynn Galbraith, 60, of Anaheim
- Company: Azure Hospice Care Inc. of Garden Grove
- Charge: One count of health care fraud
- Plea: Guilty
- Fraudulent claims submitted: Approximately $2,266,694
- Amount Medicare paid: Approximately $2,140,606
- Example claim: $6,600 submitted in October 2022
- Alleged conduct: Billing Medicare for patients who were ineligible or lacked adequate documentation supporting hospice eligibility
- Sentencing date: Dec. 3, 2026
- Maximum penalty: 10 years in federal prison
- Judge: U.S. District Judge John A. Kronstadt
- Investigating agency: HHS Office of Inspector General
According to her plea agreement, Galbraith co-owned and operated Azure Hospice Care Inc. in Garden Grove from September 2019 until July 2022. She then became the company’s sole owner and continued operating it until February 2024.
During that period, Galbraith knowingly submitted or caused others to submit Medicare claims for hospice services provided to beneficiaries who were not terminally ill or whose medical records did not support their eligibility, prosecutors said.
Medicare hospice benefits generally are limited to patients certified as terminally ill with a life expectancy of six months or less if the illness follows its normal course.
Galbraith admitted that she either knew the patients were ineligible for hospice care or knew their medical records did not contain sufficient documentation supporting a qualifying diagnosis and prognosis.
She also failed to routinely coordinate with the patients’ primary care physicians about their medical conditions or purported terminal prognoses, according to the plea agreement.
Prosecutors said Galbraith intended Medicare to rely on the false representations and pay Azure Hospice Care for the services.
In one instance, Galbraith submitted a $6,600 Medicare claim in October 2022 for hospice services provided to a beneficiary whose medical records did not establish eligibility for hospice care.
Galbraith submitted approximately $2.27 million in fraudulent claims on behalf of Azure Hospice Care. Medicare paid the company approximately $2.14 million, prosecutors said.
U.S. District Judge John A. Kronstadt scheduled sentencing for Dec. 3. Galbraith faces up 10 years in federal prison.