California Under Investigation for Hospice Fraud

The state of California is facing scrutiny from a congressional committee following revelations about pervasive hospice fraud that has reportedly cost taxpayers over $100 million.

On Monday, the House Oversight Committee initiated an investigation into significant Medicare fraud on the West Coast, raising concerns throughout California.

This probe was prompted by findings indicating that various “ghost” hospices were billing Medicare while operating from long-abandoned locations.

These questionable entities were using vacant storefronts, auto parts shops, and other idle offices—but curiously, they had no other legitimate addresses.

The Republican-led House Oversight Committee is insisting on receiving all documents and communications connected to federal hospice program audits.

In a strongly-worded letter to Governor Gavin Newsom, Chairman James Comer highlighted a troubling “well-documented history of fraud in the hospice program,” estimating losses at around $105 million.

“Recent reports have revealed unsettling evidence of fraud, including providers inflating Medicare charges and enrolling patients without their consent,” the letter stated.

“The Committee has serious concerns regarding the government’s inadequate internal controls to identify and prevent fraud, as well as insufficient oversight of these hospice programs.”

This, unfortunately, means that Americans are footing the bill for widespread hospice fraud in California, often at the expense of vulnerable patients.

According to the commission’s assessment, hospice providers in Los Angeles County may have overcharged Medicare by at least $105 million in just one year. The enrollment in such programs has soared by 1,500% since 2010, bringing the total to over 2,800 providers statewide.

A recent investigation provided data showing numerous dubious hospice and home care agencies in California, many of which shared the same locations.

For instance, St. Rita’s Home Health claimed approximately $4.3 million from Medicare from 2019 to mid-2025, despite being listed at a Van Nuys strip mall with a “For Rent” sign visible outside.

Not far away in North Hollywood, a similar situation unfolded where an identical sign was spotted at a building that allegedly housed twelve hospice and home health agencies.

When approached, various businesses cited as operating in that location had different responses; one hung up, another claimed to have relocated, and a third went to voicemail.

In a bold move, an individual linked to alleged hospice fraud showcased his $4 million house in Carmel-by-the-Sea shortly before facing arrest for stealing $3.2 million from Medicare.

The findings from the investigation corroborate claims made by whistleblowers and industry insiders who have noted rampant healthcare fraud, particularly in and around Los Angeles.

Dr. Mehmet Oz, at the helm of the Centers for Medicare and Medicaid Services, commented that a significant portion of hospices across the nation is concentrated in Los Angeles, implying that not all could be operating legally.

He promptly halted payments for questionable surgeries in Los Angeles and mentioned that each hospice in the state is now under investigation.

California gubernatorial candidate Steve Hilton expressed that genuine accountability for Governor Newsom, who falsely claimed to have eradicated hospice fraud, is only possible through federal intervention.

In light of the investigation, Newsom voiced his frustration, arguing that a moratorium he enforced in 2021 was intended to keep “bad actors” out of the system.

A spokesperson elaborated that in 2021, Newsom authorized a bill to suspend new hospice licenses, which is still in effect, thereby enhancing the oversight of current providers and discouraging dishonest entities.

“This effort appears to be yielding results, with over 280 hospice licenses revoked and another 300 entities currently under investigation over the past two years,” the spokesperson concluded.

Kevin Tutunjian, a seasoned hospice provider and founder of In the Arms of Grace Hospice, recognized the existence of fraud yet defended the integrity of the industry. He explained that blatant fraud, like billing Medicare without patient consent, is distinctly separate from organizations that may struggle to provide quality care.

The House committee is requesting that Newsom supply records related to anti-fraud actions, audits, and Medicare billing by April 6.