Over the past decade, the number of “hospice survivors” in the United States has risen dramatically. According to the Washington Post, this is, in part, because hospice companies earn more by recruiting patients who aren’t actually dying. Healthier patients are more profitable because they require fewer visits and stay enrolled longer.

Questions:
1. How large is the Hospice industry and what percent of their revenue comes from Medicare?
2. Discuss the differences between the nonprofit and for-profit hospices as presented in the article.
3. What are the bases of the whistleblower lawsuits, with respect to the hospice industry? Describe the financial incentives involved.

Source:
Whoriskey, P. and D. Keating. (2013) Hospice firms draining billions from Medicare. The Washington Post, December 26 (Retrievable online at http://www.washingtonpost.com/business/economy/medicare-rules-create-a-booming-business-in-hospice-care-for-people-who-arent-dying/2013/12/26/4ff75bbe-68c9-11e3-ae56-22de072140a2_story.html?hpid=z1)