New federal task force targets growing healthcare fraud in Nevada
Fri, July 17, 2026 at 5:31 PM
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Federal prosecutors say healthcare fraud is becoming one of the fastest-growing crimes in Nevada (KSNV File)
LAS VEGAS (KSNV) —Federal prosecutors say healthcare fraud is becoming one of the fastest-growing crimes in Nevada, prompting the U.S. Department of Justice to launch a new regional task force focused on protecting patients and taxpayers
The West Coast Health Care Fraud Strike Force, established in April 2026, brings together federal investigators and prosecutors in Nevada, California and Arizona to identify and prosecute complex healthcare fraud schemes
“We’ve had some really big indictments, and it’s just the beginning because we just started in April 2026,” said Sigal Chattah, First Assistant United States Attorney for the District of Nevada
Chattah says the impact of healthcare fraud extends far beyond hospitals and doctors’ offices
“It impacts patients, it impacts regular consumers, it impacts the taxpayers,” she said
One of the strike force’s major areas of focus is hospice fraud
In June, Gov. Joe Lombardo imposed a moratorium on new hospice licenses after state officials uncovered what they described as widespread fraud within the industry
Chattah points to Nevada’s unusually high hospice discharge rates as one of the warning signs investigators noticed
“People that go into hospice care, you have between 15 to 18 percent of people that walk out of hospice alive. Right? Makes sense,” Chattah said
She says Nevada’s recovery rate is closer to 50%, meaning about half of hospice patients are discharged alive — a figure that stands out compared to national trends and prompted investigators to take a closer look at hospice providers operating throughout the state
Authorities are also investigating dramatic increases in medical billing for wound care procedures, particularly skin grafts
Chattah says while Nevada continues to rank near the bottom nationally for behavioral health services, healthcare billing and profits have risen sharply in some sectors
“That’s just something that almost mandates and requires you to take a second look at, ‘Wait a minute, what’s going on in Nevada?'” she said
One example involves skin graft procedures
“Because the ability to bill for skin grafts is astronomical,” Chattah said
According to Chattah, billing for skin grafts has increased from roughly $200 million in 2019 to billions of dollars today, raising concerns that some patients may be receiving unnecessary medical treatments solely to generate insurance reimbursements
“What I’d like to make sure is that our patients don’t become victims of things like unnecessary wound care, unnecessary medical procedures,” she said
The strike force is also continuing to pursue fraud tied to pandemic relief programs
Chattah says prosecutors have handled numerous cases involving fraudulent applications for Paycheck Protection Program (PPP) loans, Economic Injury Disaster Loans (EIDL) and other COVID-19 tax credits funded by taxpayers
“We have seen historically an insane amount of PPP loans. There was really no government oversight on that,” Chattah said
Investigators say many suspects created fake businesses or misrepresented the number of employees or the nature of their companies to obtain government funds
“When people set up businesses, or they fibbed about the amount of employees or the nature of the business, and then they end up going and buying a Ferrari or a Corvette with that, or a second house or crypto,” Chattah said
Federal prosecutors say the West Coast Health Care Fraud Strike Force will continue expanding investigations into healthcare and pandemic-related fraud, to protect patients, preserve taxpayer dollars and hold those responsible accountable
