Van Nuys at the Center of Growing LA County Hospice Fraud Probe as Auditors Find $105 Million in Medicare Overbilling
Van Nuys, California (High Desert News Online) – A CBS News investigation and auditor reviews reveal a dense cluster of hospice providers along Van Nuys Boulevard and nationwide red flags, with auditors estimating Los Angeles County hospices overbilled Medicare by about $105 million in one year.
Key takeaways
- Auditors estimated LA County hospices overbilled Medicare by $105 million in one year.
- More than 700 of about 1,800 agencies in LA County show multiple state-defined fraud red flags.
- Nearly 500 hospices operate within a three-mile radius of Van Nuys Boulevard; 137 list Van Nuys Boulevard addresses.
- Federal and state authorities have stepped up actions, including payment cuts, license revocations, prosecutions and tighter enrollment checks (Hospice News, California press release).
A dense cluster and troubling signs along Van Nuys Boulevard
Investigators say the densest concentration of hospice agencies in Los Angeles County sits along Van Nuys Boulevard. Nearly 500 hospices operate within a three-mile radius of the strip, and 137 list Van Nuys Boulevard addresses alone. More than half of those agencies show signs the state has flagged as indicators of fraud, including multiple agencies at the same address, offices that appear vacant, or storefronts that have never clearly housed medical providers.
Regulators visiting suites in a single building found 89 companies registered to one address, and officials recorded deficiencies in multiple suites between 2021 and 2025. In one instance a CBS correspondent found mail piled at the door and no staff present. Investigators also found nearly 40 companies in one building that shared key personnel, a pattern that can be used to mask improper billing and ownership ties.
Scale in Los Angeles and the California context
Los Angeles County now accounts for nearly half of the nation’s end-of-life care providers — a dramatic rise over the last decade. California has more than 2,800 hospice programs, compared with 91 in Florida and 39 in New York, according to national tallies cited by experts. That growth concentrates Medicare and Medi‑Cal dollars in areas where oversight can lag and draws scrutiny from regulators and lawmakers.
Auditors and investigators have noted broader national figures: in fiscal 2023 improper payments included an estimated $1.2 billion in home health and $198.1 million in hospice payments. LA County’s estimated $105 million in improper hospice billing in a single year was highlighted by congressional leaders asking the HHS Office of Inspector General for answers (House Energy & Commerce post).
Tactics, patterns and patient risk
Investigators describe tactics such as “license flipping” — quickly selling a hospice to new owners to evade scrutiny — plus enrolling patients who do not need hospice services or billing for care that was never provided. These schemes divert taxpayer dollars and place frail patients at risk of poor or absent care. Experts say rapid growth in suspect operations has outpaced regulators, and overlapping ownership and shared staff complicate investigations (Hospice News, CBS News project).
Federal and state responses ramp up
Centers for Medicare & Medicaid Services has begun cutting payments to suspicious operations in Los Angeles and elsewhere. CMS and the Department of Justice have increased investigations; in 2025 federal authorities referred 343 fraud cases worth $3.4 billion and revoked enrollment privileges for thousands of providers. The Justice Department secured prison sentences in schemes tied to sham hospices — including a November 2025 case that sent four California residents to prison in a $16 million hospice fraud and money‑laundering prosecution.
California has also acted: since Governor Newsom’s 2022 hospice provider ban the state has revoked more than 280 licenses and tightened oversight. The Department of Health Care Services halts payments when credible fraud alerts arise and coordinates with the Medi‑Cal Fraud Division, though enforcement remains challenged by the scale of suspicious providers (state press release, Los Angeles Times).
Voices from the field
Dr. Ira Byock, a leading palliative care physician, told investigators the speed and scale of alleged fraud have overwhelmed regulators and warned oversight agencies are struggling to keep up (CBS News video).
CMS leaders have signaled concern about billions in misspent funds tied to unneeded or unprovided services and said they are tightening enrollment and payment rules. First Assistant U.S. Attorney Bill Essayli noted limitations in how tightly funds can be tracked when billing is fraudulent or when providers are sham operations (Hospice News reporting).
Investigative findings beyond Los Angeles
The CBS News project and The California Post supplied data showing suspicious hospice and home-health listings across the state. Reporters found addresses tied to multiple agencies that are empty storefronts, auto parts shops, or long-vacant offices; some listed locations do not appear to exist. Federal hotspots include California, Arizona, Nevada and Texas (Hospice News).
Implications for The High Desert
Economic impact
Taxpayers in the High Desert could be footing part of Medicare and Medi‑Cal bills that are improperly claimed. When federal and state funds are diverted, local services and hospitals that rely on proper reimbursement may face tighter budgets. A crackdown could return funds to the system but cause short-term disruptions if audits or payment suspensions affect local agencies (House correspondence).
Political consequences
Elected officials focused on fiscal responsibility may press for stronger enforcement. High Desert voters could support tighter provider enrollment rules, increased audits, and expedited prosecutions of bad actors while seeking protections for legitimate small providers (state action).
Social effects and cultural relevance
Fraud schemes can erode trust in home-based and end-of-life care. If bad actors are removed, families may regain confidence — but only if oversight keeps pace and legitimate local providers can demonstrate quality care without excessive new red tape. The High Desert’s cultural emphasis on self-reliance and efficient use of public dollars makes these reports especially resonant (Hospice News analysis).
Practical applications
Local health systems and social-service agencies should review contracts and referrals to outside hospice programs. Families should verify that a hospice is licensed and in good standing before enrolling a loved one. Lawmakers may increase audits and require clearer ownership disclosures — steps that could affect how local hospices operate and how quickly new providers can start (Los Angeles Times report, CBS News project).
Reporting notes and sources
This investigation draws from reporting by CBS News’ hospice fraud project and a CBS News video report, federal and state documents, congressional correspondence, and public statements from CMS, DOJ and California officials.
- CBS News hospice fraud project
- CBS News video report
- House Energy & Commerce correspondence
- Hospice News reporting on enforcement
- Los Angeles Times probe
- California state press release on license revocations
- Justice Department release on prosecution
Advice for readers in the High Desert
For readers considering hospice care or concerned about taxpayer protections: contact local officials and health providers for verification and guidance. Legitimate providers will welcome scrutiny in the interest of protecting patients and public funds (CBS News project).
“Oversight agencies are struggling to keep up with the growth of suspicious operations,” — Dr. Ira Byock (CBS News interview).
What you can do:
- Verify licenses with state regulators before enrolling a loved one.
- Ask for ownership disclosures and check for multiple companies at the same address.
- Report concerns to state Medi‑Cal fraud divisions, CMS hotlines, or local law enforcement if you suspect wrongdoing.
