Hospice Fraud Exposed in Los Angeles
Los Angeles has become a focal point in a significant investigation that reveals extensive hospice fraud within the county. A recent report indicated that numerous companies involved in hospice services have displayed concerning signs, many of which have not been adequately addressed.
Interestingly, the number of licensed hospice providers in Los Angeles County stands at about 1,800, which is around six times more than the national average when considering the elderly population size. In 2022, the California State Auditor pointed out that, since 2010, there has been a staggering 1,500% increase in hospice companies operating in the area.
In a letter dated March 29, 2022, sent to California Governor Gavin Newsom and state lawmakers, the California Auditor General raised alarms about the rapid increase in hospice agencies, highlighting that there wasn’t a proportional rise in actual need. Other troubling indicators included dense concentrations of hospices in certain areas, prolonged service durations for patients, a surprisingly high number of living patients being discharged from hospice, and possible misuse of healthcare workers’ personal information.
Many of these issues indicate a possible widespread effort to defraud Medicare and Medi-Cal’s hospice programs, which ultimately puts vulnerable hospice patients at risk. Reports revealed that out of the roughly 1,800 hospices, 742 remain operational despite these alarming fraud signs. One area alone on Van Nuys Boulevard has nearly 500 hospice companies within a three-mile radius, with more than half showing indications of fraud as per California standards.
In a particularly striking instance, a single building on Van Nuys Boulevard hosted 89 registered companies, with 72 flagged for potential fraud. Federal records indicate regulators visited several offices in this building between 2021 and 2025. Additionally, investigations revealed that around 40 of these companies shared core personnel, which could further suggest fraudulent activities.
While some may feel this issue is only just being recognized, California has been actively working to combat hospice fraud for several years. A spokesperson for Governor Newsom noted that a moratorium is in place designed to deter problematic actors while the state enhances its oversight of existing providers.
Under the governor’s direction, a multi-agency Hospice Fraud Task Force has been set up, bringing together various state departments to coordinate investigations and enforce regulations. Over the past two years, more than 280 hospice licenses have been revoked, with an additional 300 providers currently under investigation for potential revocations.
When journalists contacted 56 hospice offices identified with multiple red flags for fraud, they found many numbers were disconnected or redirected to voicemail. In some cases, callers were asked to text nonexistent numbers.
Hospice fraud unfortunately puts a heavy financial strain on taxpayers, costing millions annually, with California standing out as a particularly severe case. The investigation follows alarming reports of similar fraud issues in other states, emphasizing a wider concern over misuse of Medicare records, leading to wrongful enrollments in hospice care.
