A vast network of hospices in California is being scrutinized for allegedly siphoning off millions in taxpayer money from programs in Los Angeles and across the state.
The Centers for Medicare and Medicaid Services are now actively halting payments to dubious businesses in Los Angeles, where a significant portion of the nation’s hospice providers are located.
Officials from the hospice industry shared with the California Post information about numerous suspicious hospice and home health agencies in the state, including several that share the same addresses.
An investigation revealed that some of these addresses are linked to vacant storefronts and other businesses that have been empty for years, while some appear to be non-existent.
This inquiry was prompted by Dr. Mehmet Oz, head of the Centers for Medicare and Medicaid Services, who stated that “all hospices in California are currently under investigation.”
“About 30 to 40 percent of all hospices in the United States can be found in Los Angeles, so there’s no way they’re all operating legally,” Dr. Oz remarked.
He acknowledged that Medicare payments are being systematically “cut off” for suspicious clinics, compelling them to validate their operations.
“CMS has shifted from a ‘pay and chase’ model to a ‘stop and freeze’ method when dealing with fraud,” he explained.
New fraud detection technologies, including AI, are aiding investigators in identifying questionable clinics, often based on criteria like size and patient volume.
Take, for instance, St. Rita’s Home Health, which operates out of a deserted strip mall in Van Nuys and has billed Medicare over $4 million since 2021—despite issues with its listed location.
Although the California Department of Public Health (CDPH) recognizes the agency as operational, data indicates it billed Medicare approximately $4.3 million between 2019 and mid-2025. Strangely, the agency lacks a website, and when contacted, a post office revealed it had relocated, providing just a Yahoo email for inquiries.
In North Hollywood, another address reportedly hosts 12 hospice and home health agencies, yet a “For Rent” sign hangs prominently outside. Shockingly, this building has billed taxpayers over $20 million in 2023 and 2024.
Attempts to reach various providers at that address were met with confusion. For example, Pluto Home Health Care hung up when pressed about its location, and Kaplan Hospice Care redirected inquiries to someone unrelated. A representative from Confident Home Health insisted they had moved despite the CDPH listing and seemed unsure about their online presence.
Queen of The Valley Home Health is still active according to CDPH, but a visit to its address revealed an auto repair shop. This agency has billed nearly $600,000 in 2023-2024, according to CMS.
Dr. Oz noted he couldn’t comment on specific agencies but affirmed that the findings align with the issues they are addressing. He raised questions about the necessity of multiple hospices operating from the same building, stating that if they fail to meet criteria, funding will be withdrawn.
Dr. Ira Byock, a prominent figure in palliative care, highlighted that the growing allegations of fraud have overwhelmed state and federal authorities. He pointed out that around 7,000 hospice programs exist in the U.S., with a disproportionate number in California, many of which have emerged recently and could be fraudulent.
He warned of a “crisis” in hospice and home health care that endangers vulnerable patients and urged state officials to take action.
Sheila Clark, president and CEO of the California Hospice and Palliative Care Association, expressed frustration over the peculiar locations of these agencies, arguing they are not what licensed care should look like.
Clark has been advocating against fraud in this sector since 2019, indicating this has been a pressing issue for those working with patients and families.
A 2022 California Hospice and Licensing and Oversight Report criticized the lack of adequate controls, exposing opportunities for fraud and abuse.
The California Department of Public Health was approached for comments about the agencies mentioned, particularly regarding inspections or allegations of fraud. They confirmed all entities identified remain licensed, but clarified that federal investigations occur only with CMS’s approval.
