Yes, that is leeches like blood sucking worms. Demi is really into cutting edge health & wellness treatments, and she told Letterman that she went to Austria to try some blood detox that involved leech therapy. Besides feeling a bit creeped out, I wondered what the real health benefits of this kind of detox are, and I couldn't find much online. If any of you know, please share! Leeches were typically used for bloodletting in old world medical practices.
I'm pretty open to cutting edge health & wellness treatments as well, but this one, I think I'll pass. Celebrities really are an odd bunch sometimes. To see Demi explain in more detail her leech therapy, skip the video to the 3:30 mark. That's where Demi starts talking about her blood sucking detox.