A CBS News investigation has revealed indicators of widespread fraud occurring in California’s hospice care industry, particularly in Los Angeles County.
Three years ago, California’s state auditor sounded the alarm that Los Angeles County had seen a 1,500% increase in hospice companies since 2010 – more than six times the national average relative to its elderly population.
Auditors estimated LA County hospices overbilled Medicare by $105 million in a single year. The report called out notable red flags—key warning signs of fraud:
The state says it proceeded to investigate and revoke the licenses of 280 hospices.
The Problem Continues
The CBS News analysis reveals that over 700 of the roughly 1,800 hospices in LA County trigger multiple red flags for fraud as defined by the state.
Gov. Gavin Newsom has presidential aspirations, and wants to do for the country what he has done for California. CBS asked him for a comment. His office responded: “Under Governor Newsom’s administration, California has cracked down on hospice fraud, launched partnerships across state agencies, and the California Department of Justice has arrested criminals to hold them accountable.”
- A CBS News investigation found about 42% (742 companies) still operate despite having multiple signs the state has outlined as indicators of fraud.
- Nearly 500 hospices operate within a 3-mile radius, the county’s densest concentration of agencies.
- There are 137 hospices operating along Van Nuys Boulevard alone. More than half of them show signs that the state has outlined as indicators of fraud.
- 89 companies are registered in a single building in Van Nuys. The state says 72 have multiple signs that could indicate fraud. It’s the most extreme case of hospice clustering CBS found.
- Though Medicare is federally administered, states license hospices to operate. None of the hospices flagged in the CBS News analysis turned up in California’s enforcement actions database.
NONE!
It’s a long article: read it for yourself.
