California’s Growing Hospice Fraud Issue

The problem of hospice fraud in California appears to be escalating rapidly.

Numerous investigations have been conducted by federal authorities and independent reporters, revealing extensive networks and buildings dedicated to this issue.

“No one is there in person. No one answers the phone.”

Fraud Diagnosis

A report from the Los Angeles Times in April pointed out a significant building that is home to 89 licensed hospices. Among them is a hospice operator who reportedly faced indictment for allegedly misappropriating $2.5 million from the federal government by using signatures from retirees for hospice enrollment.

The two-story facility located in Van Nuys filed claims with Medicare amounting to over $38 million in 2023. This same building featured in a recent video by YouTuber Danny Mullen.

In Mullen’s exploration, he and his podcast co-host, comedian Leo Dottavio, found the place largely vacant, occupied mainly by people engaged in unrelated enterprises.

“Many of these hospice companies had numbers on their doors boasting 24-hour customer service, so we decided to call them,” Mullen explained. “No one was present. No one picked up the phone.”

In Search of Reliable Information

Most calls ended in voicemail. Some numbers didn’t even have voicemail setups, while others were disconnected. One company’s listing even contained a misspelling of “reliable.”

A person who answered the phone for one listed number informed Mullen and Dottavio that he “didn’t know what he was talking about” and expressed no interest in accepting hospice patients.

“Whose hospice is this?” he questioned, only to call back later claiming they had likely dialed the wrong number.

That same man then called again, asking how they got his number.

In another exchange, someone told Dottavio, “Forget you,” despite being informed that the phone number was publicly available.

Are They Really Closed?

In January, Dr. Mehmet Oz, the Administrator of the Centers for Medicare and Medicaid Services, indicated that California might rank as the worst state for such fraud, even more so than Minnesota. He mentioned various serious crimes, including human trafficking, linked to hospice fraud.

In March, YouTuber Nick Shirley looked into several establishments suspected of hospice-related fraud. He found many locations appeared abandoned. Dottavio and Mullen experienced similar results when visiting the site. The hospice facility they were supposed to check was unoccupied during their visit.

“No one is around today,” one individual told the duo without providing further reasoning for the vast emptiness of the building.