Concerns Rise Over Hospice Providers in Van Nuys, California

A building located in Van Nuys, California, is drawing scrutiny due to a significant number of hospice providers and medical institutions registered at the same address. The Merabi Professional Medical Plaza has been termed “ground zero” for Medicare fraud in the hospice sector.

According to its website, the building spans three stories and covers 32,000 square feet. Recently, CBS News conducted a visit to investigate the hospice company registered at the Friar Street location.

Reports indicate that 89 hospice companies are listed at this address. However, a check of state records shows there are actually 50 hospice companies along with 97 home health agencies registered there.

In Los Angeles County, over 700 out of about 1,800 hospice centers have been flagged for multiple signs of fraud. The statistics show varying degrees of issues among providers: 130 reported no flags, 353 had one, and 548 showed two, which raises quite a few questions.

Investigation into Hospice Fraud in Los Angeles County

State documents reveal that 147 hospice and home health agencies are registered under Merabi Professional Medical Plaza at the Van Nuys address. Interestingly, a 2022 report from the California State Auditor stated that the building is home to more than 150 institutions, suggesting it exceeds its physical capacity.

This audit also noted a staggering 1,500% increase in hospice agencies in the county since 2010, and highlighted that Los Angeles had “6.5 times” the national average of such agencies relative to the elderly population in 2019.

California Assemblywoman Alexandra Macedo has raised concerns, describing the building as “dilapidated” and lacking essential features like wheelchair ramps and accessible parking in a letter to Governor Gavin Newsom.

Additional Congressional members joined her in this letter, advocating for accountability.

Federal inspection records show that from 2021 to 2025, regulators visited the Van Nuys hub multiple times and identified nearly 400 violations across 75 businesses. This paints a troubling picture and is hard to overlook.

Fraud Allegations Involve Billions

According to CBS News, several of the hospice companies registered at Merabi Professional Medical Plaza have been billing Medicare for a number of years. The plaza’s owner, Kambiz Merabi, mentioned to CBS that Medicare officials had visited for a tour two years prior, and he believes the businesses appear legitimate.

Despite government records showing the numerous providers at the facility, Merabi asserts that his records indicate only 12 hospice companies active at that location.

There are stipulations that if the facility is moved without notifying the authorities, its permit may be revoked as per state law.

Focus on Hospice Industry Fraud Heightens

Merabi has shared in various Instagram videos that he offers virtual offices, meaning businesses can utilize his building as a registered address. Yet, federal law stipulates the necessity of a physical office space for hospices.

This scrutiny of Merabi Professional Medical Plaza comes during a renewed effort by the government to combat fraud. Recently, an anti-corruption task force was established as part of a focus on addressing such issues more aggressively.

Fox News Digital has attempted to reach out to Merabi, Macedo, the California Department of Public Health, and the Centers for Medicare & Medicaid Services for their insights.