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Medicare hospice

Medicare hospice requests and vendor spend, verified inside the EHR

VectorCare is patient logistics infrastructure for the Medicare hospice benefit. Referrals, level-of-care transfers, and vendor services like DME, pharmacy, transportation, and meals start from the patient chart, go only to verified vendors, and close with confirmed completion matched to the invoice. The hospice keeps its EHR, and the physician makes every clinical call. VectorCare is the verification layer between the chart and the spend.

Illustrative example

Hospice request

Level-of-care change · routine home care to general inpatient

  • Patient validated from the chartFHIR record
  • Hospice election on fileeffective date checked
  • General inpatient care confirmedby the physician
  • Facility eligible for GIPMedicare-participating
  • Transport related to terminal illnessbilled to the hospice
  • Vendor verifiedNPI, enrollment, exclusions
  • Pickup 8:14 PM · Arrival 8:52 PMGPS confirmed
Request ID matched to invoicePayable

Needs review

This week

  • Invoice with no request IDnot payable
  • Transport marked unrelateddiagnosis matches terminal illness
  • Vendor standing lapsedremoved from vendor list
3 items held · evidence attachedOpen record
$28.3B

Medicare hospice spending in 2024, for more than 1.8 million beneficiaries.

Source: MedPAC, March 2026 Report to the Congress [S1]

$6.6B

Medicare paid to other providers for hospice patients during hospice care, 2010 to 2019.

Source: HHS-OIG, A-09-20-03015 [S2]

98.8%

share of Medicare hospice days in 2024 that were routine home care, so most hospice logistics happen in the home.

Source: MedPAC, March 2026 [S1]

What it is

The missing link between the chart and the spend

The hospice EHR holds the clinical story: diagnoses, encounters, the plan of care, and certifications. The services around the patient live somewhere else. DME, pharmacy, transportation, and meals are ordered by phone, fax, and email, and billed later. When a reviewer asks what was delivered, to whom, by which vendor, and whether it was related to the terminal illness, the answer is spread across inboxes and invoices.

VectorCare wraps that spend around the chart. Every request starts from the patient record, is checked against it, goes only to vendors in good standing, and closes with confirmed completion and an invoice that matches. One audit trail covers every request, vendor, completion, and invoice, tied to the patient.

  • One record, clinical plus spend

    Every request, vendor, completion, and invoice is tied to the patient and the chart, ready when a Medicare contractor asks.

  • Clinical decision support, not a coverage determination

    VectorCare assembles the evidence and suggests. The certifying physician decides.

  • Not another EHR

    VectorCare runs inside the hospice's EHR as a SMART on FHIR app, or connects by FHIR or API. Clinicians don't switch systems.

The problem

Spend outside the benefit is checked after the money moves

Once a patient elects hospice, the hospice must give or arrange all care for the terminal illness and related conditions, paid through its daily rate [S6] [S3]. Other providers can still bill Medicare for the same patient, and HHS-OIG found that the claim edits meant to stop improper payments were not effective or did not exist [S3].

Federal auditors keep finding the same gap. Vendors often don't know the patient is in hospice [S3], and nothing at the point of care ties a service to the hospice's plan of care. Hospice fraud is a data integrity failure: patients, services, vendors, and invoices that were never checked against the source record.

CMS put a six-month nationwide moratorium on new hospice enrollment in place on May 13, 2026. [S7]

44%

of hospice patients had items or services billed outside the hospice benefit.

HHS-OIG counted $6.6 billion in these nonhospice payments from 2010 through 2019, averaging 44% of hospice beneficiaries each year, and warned Medicare could pay for the same items or services twice. [S2]

HHS-OIG, A-09-20-03015, Feb 2022

$117M

in DME the hospice's daily rate already covered.

In 121 of 200 sampled DMEPOS items, Medicare improperly paid suppliers for items that palliated or managed a hospice patient's terminal illness. Most suppliers didn't know the patient was in hospice. [S3]

HHS-OIG, A-09-20-03026, Nov 2021

70 of 100

sampled hospital outpatient services should have been the hospice's.

The medical reviewer found they palliated or managed the terminal illness and related conditions, and OIG estimated $190 million in improper payments over five years. [S4]

HHS-OIG, A-09-23-03024, Nov 2024

6 states

where new hospices face enhanced federal oversight.

New hospices in Arizona, California, Georgia, Nevada, Ohio, and Texas can have their claims medically reviewed before payment for 30 days to one year. [S8]

CMS, MLN7867599, Feb 2026

The rules

Medicare hospice rules, applied to every request

Who pays for a ride or a bed depends on the patient's election date, level of care, and diagnosis. VectorCare records the answer on the request, before anyone is dispatched.

Related transport is the hospice's responsibility.

Ambulance transport related to the terminal illness that happens after the effective date of election is the hospice's responsibility, arranged by the hospice and covered by its payment. [S5]

The ride home on the election date is not.

Ambulance transport to the patient's home on the effective date of election happens before the plan of care exists, so Medicare pays it under the ambulance benefit instead. [S5]

General inpatient care has set settings.

General inpatient care is for pain control or symptom management that can't be handled elsewhere, and only in a Medicare-participating hospital, SNF, or hospice inpatient facility. In 2024, 16% of hospice patients had at least one GIP day. [S5] [S1]

Respite is short and capped.

Inpatient respite relieves the family caregiver. It is paid at the respite rate for no more than 5 consecutive days at a time. In 2024, 4% of hospice patients had at least one respite day. [S5] [S1]

How it works

From the chart to a matched invoice, without leaving the EHR

1

Ordered in the chart.

A clinician starts the request in the patient record through SMART on FHIR, whether it's a hospice referral, a level-of-care change, or a DME, pharmacy, transport, or meal service.

2

Validated against the record.

The patient, the hospice election, and the clinical evidence are checked against EHR data. For eligibility and level of care, VectorCare shows the evidence and the physician decides.

3

Matched to verified vendors.

Only vendors in good standing, with the right capability and capacity in the patient's area, receive the request. Every vendor that's filtered out shows the reason.

4

Completion confirmed.

Delivery, pickup, and arrival are confirmed by GPS or by API from the vendor's system, with timestamps.

5

Paid when the request and invoice match.

Each request carries a unique ID. An invoice without a matching, completed request isn't payable.

6

Written back to the chart.

Results return to the EHR by FHIR, and the full request history stays in one audit trail.

The controls

Every scheme meets a specific control

The schemes behind recent hospice enforcement map one to one to checks VectorCare runs on each request.

01

Ghost patients

Patient validated from the chart

No real record in the EHR, no request.

02

Ghost services

Completion confirmed before payment

A service without GPS or API confirmation isn't payable.

03

Phantom or duplicate billing

One request ID per invoice

No matching request, no payment.

04

Kickback recruiting

Requests start with a clinician

Requests come from a clinician in the chart, not an outside marketer.

05

Sham vendors

Vendors in good standing only

NPI, Medicare enrollment, and exclusion lists are checked before a request reaches a vendor, and rechecked over time.

06

Spend outside the benefit

Related or unrelated, recorded at the order

Each service is tagged to the plan of care, so related care is arranged and paid by the hospice.

Who it's for

Built for the teams that run the hospice benefit day to day

Hospices

Every vendor service, one queue

Schedule, verify, and pay the services around each patient from one place, with the evidence already attached.

  • DME, pharmacy, transportation, and meals ordered from the chart in one queue
  • Vendors invited, credentialed, and rechecked for standing
  • Completion rate, on-time performance, and cost per service by vendor
  • Spend outside the benefit visible by patient, category, and vendor
VectorCare for home health providers
Hospitals and health systems

Hospital to hospice, without the phone tree

When a patient elects hospice at discharge, the referral, the placement, and the ride home run inside the chart.

  • Eligibility evidence assembled from the record for the certifying physician
  • Certification and election signed in the EHR and written back
  • Referral sent only to hospices in good standing with capacity and the right level of care
  • Transport booked and tracked, with status in the patient chart
Discharge delays
Use cases

How hospice teams put it to work

Hospital discharge to hospice

Hospital to hospice, the same day

An inpatient with a terminal diagnosis chooses hospice. Today the case manager calls hospices one by one, faxes records, and books the ride home separately.

With VectorCare, the physician sees the eligibility evidence in the chart, certification and election are signed and written back, and the referral goes only to hospices in good standing with capacity. The ride home is booked and tracked from the same request, and the audit trail shows every step.

Level-of-care change

A general inpatient transfer at night

A hospice nurse finds that symptoms can no longer be managed at home. The physician confirms general inpatient care, and the request only offers Medicare-participating facilities with an open bed.

Because the transport is related to the terminal illness, it's arranged and paid by the hospice [S5], and the request records that. Arrival is GPS-confirmed, the invoice matches the request ID, and the chart shows the transfer.

Infrastructure

SOC 2 Type II, HIPAA, Epic-listed

VectorCare has completed a SOC 2 Type II audit, is HIPAA compliant, signs BAAs with every covered entity, hosts on AWS in the United States, and is listed on Epic's Connection Hub. Full data export is available on request. See security details.

Frequently asked questions

  • Ambulance transport related to the terminal illness is the hospice's responsibility under the Medicare hospice benefit when it happens after the effective date of election, and the hospice arranges it. Transport to the patient's home on the effective date of election is paid under Medicare's ambulance benefit instead, because it happens before the plan of care exists. Transport for an unrelated condition follows normal Medicare ambulance rules.
  • Spending outside the hospice benefit is Medicare payment to other providers, such as DME suppliers, hospitals, and ambulance companies, for a patient during a hospice period of care. HHS-OIG counted $6.6 billion in these nonhospice payments from 2010 through 2019, and its audits found some were for care the hospice's daily rate already covered.
  • VectorCare checks each vendor before a request reaches it: the NPI in NPPES, Medicare enrollment in PECOS, and the OIG exclusion list and SAM.gov. Standing is rechecked over time, and a vendor that loses standing stops receiving requests. Every vendor that's filtered out shows the reason and the source.
  • VectorCare does not decide hospice eligibility or the level of care. VectorCare is clinical decision support: it assembles evidence from the patient's chart against the local coverage rules that apply to the patient and suggests a level of care, and the certifying physician decides. VectorCare never makes a Medicare coverage determination.
  • VectorCare does not replace the hospice EHR. VectorCare runs inside the EHR as a SMART on FHIR app, or connects by FHIR or API when the EHR is built in house. Requests start in the patient chart and results are written back to it, so clinicians don't switch systems.
  • VectorCare keeps one record of every request, vendor, completion confirmation, and invoice, tied to the patient and the chart. When a Medicare contractor asks what was delivered and why, the hospice can produce the service evidence alongside the clinical record instead of rebuilding it from phone logs and invoices.

Verify every hospice request, from chart to invoice

See a referral, a level-of-care transfer, and a vendor service run end to end inside the EHR.

Sources

  1. [S1] MedPAC, Report to the Congress: Medicare Payment Policy, March 2026, Chapter 10, Hospice services. In 2024, more than 1.8 million Medicare beneficiaries received hospice from about 6,700 providers, and Medicare hospice spending was $28.3 billion. Routine home care was 98.8% of covered hospice days. 16% of hospice patients had at least one general inpatient day and 4% at least one inpatient respite day. https://www.medpac.gov/wp-content/uploads/2026/03/Mar26_Ch10_MedPAC_Report_To_Congress_SEC.pdf
  2. [S2] HHS-OIG, A-09-20-03015 (Feb 2022), Medicare Payments of $6.6 Billion to Nonhospice Providers Over 10 Years for Items and Services Provided to Hospice Beneficiaries Suggest the Need for Increased Oversight. Nonhospice payments totaled $6.6 billion from 2010 through 2019, and an average of 44% of hospice beneficiaries received nonhospice items and services. https://oig.hhs.gov/reports/all/2022/medicare-payments-of-66-billion-to-nonhospice-providers-over-10-years-for-items-and-services-provided-to-hospice-beneficiaries-suggest-the-need-for-increased-oversight/
  3. [S3] HHS-OIG, A-09-20-03026 (Nov 2021), Medicare Improperly Paid Suppliers an Estimated $117 Million Over 4 Years for Durable Medical Equipment, Prosthetics, Orthotics, and Supplies Provided to Hospice Beneficiaries. 121 of 200 sampled items were improperly paid, and the majority of suppliers were unaware they had provided items to hospice beneficiaries. https://oig.hhs.gov/reports/all/2021/medicare-improperly-paid-suppliers-an-estimated-117-million-over-4-years-for-durable-medical-equipment-prosthetics-orthotics-and-supplies-provided-to-hospice-beneficiaries/
  4. [S4] HHS-OIG, A-09-23-03024 (Nov 2024), Medicare Improperly Paid Acute-Care Hospitals an Estimated $190 Million Over 5 Years for Outpatient Services Provided to Hospice Enrollees. 70 of 100 sampled outpatient services did not comply. https://oig.hhs.gov/reports/all/2024/medicare-improperly-paid-acute-care-hospitals-an-estimated-190-million-over-5-years-for-outpatient-services-provided-to-hospice-enrollees/
  5. [S5] CMS, Medicare Benefit Policy Manual, Chapter 9, Coverage of Hospice Services Under Hospital Insurance (Rev. 13664, Mar 5, 2026): §40.1.5 Short-Term Inpatient Care (GIP settings; respite no more than 5 consecutive days) and §40.1.9 Other Items and Services (ambulance transports related to the terminal illness after the effective date of election are the hospice's responsibility; transports home on the effective date of election are paid through the ambulance benefit). https://www.cms.gov/regulations-and-guidance/guidance/manuals/downloads/bp102c09.pdf
  6. [S6] CMS, Medicare Hospice Benefits, Product No. 02154, March 2026: "The hospice team must give or arrange all care you get for your terminal illness and related conditions," and "Original Medicare will also pay for covered services for any health problems that aren't part of your terminal illness and related conditions." https://www.medicare.gov/publications/02154-medicare-hospice-benefits.pdf
  7. [S7] CMS press release, May 13, 2026, CMS Announces Aggressive Nationwide Crackdown on Fraud with Six-Month Hospice and Home Health Agency Enrollment Moratoria. https://www.cms.gov/newsroom/press-releases/cms-announces-aggressive-nationwide-crackdown-fraud-six-month-hospice-home-health-agency-enrollment · Federal Register notice: https://www.federalregister.gov/documents/2026/05/15/2026-09718/medicare-medicaid-and-childrens-health-insurance-programs-announcement-of-nationwide-temporary
  8. [S8] CMS, MLN7867599 (Feb 2026), Period of Enhanced Oversight for New Hospices in Arizona, California, Nevada, Texas, Georgia & Ohio. The period started July 13, 2023 in AZ, CA, NV, and TX, and GA and OH were added Dec 30, 2025. It includes medical review such as prepayment review and lasts 30 days to 1 year. https://www.cms.gov/files/document/mln7867599-period-enhanced-oversight-new-hospices-arizona-california-nevada-texas-georgia-ohio.pdf