Hospice Care Scam Investigation in Los Angeles
An office building tucked away on a quiet street in Los Angeles has come under scrutiny as a central location for a suspected hospice care fraud operation in California.
Meravi Professional Medical Plaza, situated in the Van Nuys area of Los Angeles’ San Fernando Valley, spans 32,000 square feet and is reportedly home to 89 licensed hospice companies.
Sheila Clark, a patient advocate dedicated to uncovering fraud in the hospice sector, mentioned that this building exemplifies how taxpayer-funded programs like Medicare and Medicaid can be exploited.
An updated report released on Thursday highlighted state records concerning the building and the businesses contained within it. This follows CBS News’ ongoing investigation into hospice fraud in Los Angeles.
Clark expressed her disbelief upon seeing the building, questioning how so many licensed hospices could be operating in such a small space.
Despite its appealing exterior, which includes a law firm, a modeling agency, and a real estate office, CBS reporter Adam Yamaguchi pointed out that this building is the most extreme example of what is referred to as “clustering,” where numerous hospice offices are closely located. Investigators view this as a major red flag for potential fraud.
According to CBS, the Meravi Plaza address appears repeatedly in state records tied to licensed hospice companies. In the entrance hall of the building, a long tiled hallway lists several hospice agencies, although the building’s owners claim many have since ceased operations.
Clark stated that it “doesn’t make sense” for so many certified hospice offices to exist in one venue. Auditors echoed this sentiment, suggesting that the density of these companies implies that the number of institutions may surpass the patients needing their services.
The 2022 California State Audit highlighted “clustering” as a concern, noting that one single building had even housed 150 licensed hospice and home health agencies, an amount that exceeded the building’s apparent capacity.
The audit noted a 1,500 percent surge in hospice companies throughout Los Angeles County since 2010, leading to a situation where there are six times the national average of hospice providers when considering the county’s elderly population.
In the case of the Van Nuys building, federal records show that from 2021 to 2025, regulators visited various suites and identified nearly 400 violations across 75 businesses. These violations included cases of no patient visits, fraudulent drug prescriptions, and offering services to living patients without life-threatening conditions. Hospice companies bill state programs like Medicare and Medi-Cal, which are funded by U.S. taxpayers, for their services.
The building’s owner, Kambiz Merabi, stated that Medicare officials had examined his building two years ago. He mentioned that tenants must provide documentation proving they are legitimate businesses and asserted that he doesn’t monitor their operations closely.
However, Merabi indicated that his records show only 12 hospice companies actively operating in his building—many have relocated, and some might be “ghost hospices” billing the government without providing actual care.
California Attorney General Rob Bonta has described the rate of fraud in the state’s hospices as “unacceptable” and has expressed a commitment to addressing the issue.
Recently, Mehmet Oz, a leader at the Centers for Medicare and Medicaid Services, commented on the widespread hospice fraud in Los Angeles, emphasizing that they would thoroughly inspect claims for legality and ensure they are providing genuine services before any payments are made.
While owners of the Van Nuys building claim they support efforts to eliminate fraudulent practices and will evict any offending businesses, Merabi noted that authorities have never reported any incidents occurring in his property.
“I’m all for it. At the end of the day, you and I are paying the price for everything that’s not right,” Merabi remarked.
