Two West Covina Women Charged in $4.8M Medicare Hospice Fraud

Two women from West Covina, Normita Sierra and Rowena Elegado, were arrested for allegedly orchestrating a $4.8 million Medicare fraud scheme involving hospice services for patients who were not terminally ill. Sierra, owner of Golden Meadows Hospice Inc. and D’Alexandria Hospice Inc., and Elegado are charged with multiple counts including health care fraud, conspiracy, and illegal remuneration for health care referrals. The indictment alleges they paid kickbacks to marketers to recruit patients without proper physician referrals, with payments reaching up to $1,300 per patient per month. Patients enrolled under this scheme rarely died and were often discharged after about six months, sometimes moved to Sierra’s other health care entities. Additional individuals involved have pleaded guilty to related charges, including a nurse practitioner who falsified patient conditions to qualify them for hospice care. If convicted, Sierra faces up to 10 years in federal prison for each count of health care fraud.