From the Sacramento Bee via Cab Drollery:
In California, records show that [Medicare] auditors routinely rejected bills (up to 90%) from those rehabilitation hospitals providing services to those who'd had total knee or total hip replacements. As a result, several of those hospitals have closed or are about to.
From the NYTimes:
Over the last eight years, the refusal of patients to die according to actuarial schedules has led the federal government to demand that hospices exceeding reimbursement limits repay hundreds of millions of dollars to Medicare.
At least in the California case, audits were conducted by private contractors who were paid a percentage of the money they recovered.
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