Medicare hospice fraud in Los Angeles: Van Nuys Boulevard at center of alleged hospice overbilling in California
A CBS News investigation and state audits uncovered alleged Medicare hospice fraud across Los Angeles County, concentrated along Van Nuys Boulevard, with auditors estimating about $105 million in overbilling in one year and hundreds of suspect agencies.
- Auditors estimate Los Angeles County hospices overbilled Medicare by $105 million in a single year.
- Investigators flagged more than 700 of roughly 1,800 county hospices for multiple fraud indicators.
- Nearly 500 hospices operate inside a three-mile stretch near Van Nuys Boulevard; 137 are on the boulevard itself.
- CMS and DOJ have stepped up enforcement, referring cases, revoking billing privileges, and pursuing prosecutions.
What investigators found on Van Nuys Boulevard
CBS reporters and state auditors documented an extreme density of providers clustered along Van Nuys Boulevard and nearby blocks. Investigators recorded nearly 500 agencies in a three-mile radius and 137 listed directly on the boulevard, with many showing the same addresses and shared staff.
In one Van Nuys building investigators found 89 hospice companies registered to a single location; regulators visiting suites from 2021 to 2025 noted deficiencies such as shared key personnel across roughly 40 companies and empty offices with piled mail. These findings are detailed in the CBS News investigation.
Auditors also calculated that LA County hospices overbilled Medicare by about $105 million in a single year — a figure highlighted in a congressional post and state audit summaries. Investigators described widespread suspicious operations, including fake addresses, empty storefronts, auto parts shops listed as offices, and locations that may not exist.
“Many listed the same addresses and staff. Regulators noted problems across multiple suites from 2021 to 2025.” — Documentation summarized from media and audit reporting.
How the alleged scams worked
Investigators describe recurring patterns: networks of companies with common owners or shared staff billing Medicare for care that was never provided or not medically necessary, while cash flows were routed through shell entities. Regulators documented instances of license flipping, rapid buying and selling of hospice licenses to evade detection.
Some reports indicate beneficiaries may have been enrolled without clear consent. These tactics allowed groups to bill Medicare heavily while delivering little or no care, according to reporting and enforcement summaries, including coverage by hospice industry reporting and the CBS News investigation.
Nationwide scope and context
This issue extends beyond Los Angeles. There are roughly 7,000 hospice programs nationwide; California alone has >2,800 hospices — far more than states such as Florida (91) or New York (39) — and has emerged as a national hotspot for abusive practices.
HHS-OIG reported nearly $198.1 million in suspected hospice fraud in fiscal year 2023, and CMS flagged a 7.7% improper payment rate — roughly $1.2 billion — for home health claims. Los Angeles County accounts for a disproportionate share of billing: one analysis attributes about 18% of U.S. home health and hospice Medicare billing to LA and notes large recent increases in billing volume.
Regulatory and criminal responses
Federal and state agencies have amplified enforcement. CMS referred hundreds of cases to law enforcement and revoked thousands of billing privileges; CMS and DOJ teams have coordinated deeper probes, particularly in California (hospice industry reporting).
In a notable prosecution, four California residents were sentenced to prison for a $16 million sham hospice scheme that operated from 2019 to 2023; authorities seized assets including homes and $2.9 million in cash — details available in the Justice Department release.
At the state level, California has moved aggressively since 2022: Governor Gavin Newsom’s hospice provider ban has led to the revocation of more than 280 licenses, and the California Department of Health Care Services has used fraud detection tools to pause payments and support prosecutions through the state DOJ Medi‑Cal fraud unit (California state announcement).
Congressional oversight and political reaction
House committees including Energy & Commerce and Ways & Means have pressed HHS-OIG for briefings after identifying dozens of hospices listed at the same addresses and other red flags. Chairmen posted requests and reports calling for stronger federal oversight and faster responses to suspicious providers (House Energy & Commerce post).
Voices inside the field
Experts warn the scale is overwhelming regulators. Dr. Ira Byock, a palliative care leader, told the California Post the speed and scope of alleged fraud have outpaced authorities. CMS Administrator Dr. Mehmet Oz has emphasized protecting vulnerable seniors and targeting bad actors who exploit patients and taxpayers (CBS News; hospice reporting).
Why taxpayers should care
Medicare is funded by taxpayers and serves millions of seniors. When hospices overbill or bill for services not rendered, public dollars are diverted from legitimate care. The suspected losses — millions in Los Angeles alone and nearly $200 million nationwide in recent audits — threaten program integrity and fiscal sustainability.
Conservative readers concerned with fiscal responsibility may see these cases as evidence that stronger enforcement and tighter enrollment controls are necessary to stop waste and protect beneficiaries (House Energy & Commerce post).
Implications for the United States
Economic impact: Widespread Medicare hospice fraud increases federal spending and strains the Medicare trust fund. Overbilling like the $105 million identified in Los Angeles can contribute to higher premiums and reduced resources for legitimate care.
Political consequences: Lawmakers face pressure to strengthen oversight of Medicare and Medicaid. Committees have already sought briefings with HHS-OIG; policymakers may pursue bipartisan reforms such as stricter enrollment checks and faster suspension of suspicious providers.
Social effects: Fraud harms patients and families when seniors enrolled in sham programs receive inadequate care, increasing strain on families and local health systems and eroding public trust in hospice and home health providers.
Practical applications and next steps
- Policy actions: Tighten provider enrollment checks, enforce rules on shared addresses and personnel, and accelerate payment suspensions when red flags appear.
- Enforcement: Continue coordinated federal-state investigations and prosecutions; use license revocations and asset forfeiture where appropriate (DOJ case).
- For families: Verify hospice credentials, ask for written care plans, and report suspicious billing or lack of services to authorities.
Reporting sources
- CBS News’ investigation and related CBS video reporting.
- House Energy & Commerce committee post and requests.
- Hospice industry reporting on CMS and DOJ enforcement activity.
- Justice Department releases on convictions and asset seizures.
- California state announcements on license revocations and the governor’s hospice provider ban.
End of article — reporting based on Times Media Service compilation of public reports and investigations.
