Van Nuys Boulevard at Heart of Massive Medicare Hospice Fraud Investigation; Regulators Find Hundreds of Suspect Agencies
A CBS News-led investigation and later reports uncovered an extensive web of alleged Medicare hospice fraud in Los Angeles County, clustered around Van Nuys Boulevard, implicating hundreds of agencies in overbilling, sham services and empty unsuitable sites costing taxpayers millions.
- State auditors estimated Los Angeles County hospices overbilled Medicare by $105 million in a single year — per the CBS News project.
- Investigators identified roughly 700 of 1,800 LA County hospices that triggered multiple state-defined fraud red flags (CBS News project).
- Nearly 500 agencies within a 3-mile radius along Van Nuys Boulevard — including 137 on Van Nuys Boulevard itself — with many listings tied to empty storefronts and shared addresses (CBS News project; Hospice News).
What investigators found on Van Nuys Boulevard
Reporters, auditors and regulators mapped a dense cluster of hospice companies in a small part of the San Fernando Valley using billing data, license records and site visits. Many listings pointed to empty storefronts, auto parts shops and offices unfit to provide care, according to the CBS News project and related reporting.
In one multi-suite office building investigators found 89 companies at the same address; regulators documented deficiencies in multiple suites between 2021 and 2025. A correspondent visiting a listed office found no staff and mail piled at the door — evidence reporters say fits a pattern of sham hospice operations (CBS News project; Hospice News).
Common red flags: duplicate addresses, shared personnel among many agencies, sites not set up to provide care, and rapid ownership changes or “license flipping.”
Scale across Los Angeles and California
California hosts far more hospice providers than other large states — more than 2,800 hospice programs statewide compared with 91 in Florida and 39 in New York — concentrating risk in Los Angeles County and making the region a magnet for actors seeking Medicare payments (Hospice News).
Auditors said LA County houses almost half of the nation’s end-of-life providers. Investigators reported a seven-fold increase in hospice and home health billing in parts of Los Angeles and that roughly 18% of national home health and hospice Medicare billing occurs in the area — figures that prompted congressional oversight and scrutiny from federal watchdogs (Hospice News; House Energy & Commerce letter).
Federal and state enforcement steps
Federal authorities have ramped up actions to cut off bad actors. The Centers for Medicare and Medicaid Services revoked billing privileges for 4,780 providers in 2025 and referred hundreds of suspected fraud cases to prosecutors, according to reporting from Hospice News. The U.S. Department of Justice has secured convictions and sentences, including a 2025 case where four California residents were sentenced in a $16 million sham hospice and money-laundering scheme; prosecutors seized homes and nearly $3 million in cash (DOJ release).
At the state level, Gov. Gavin Newsom’s 2022 ban on certain bad-actor hospice providers preceded the revocation of more than 280 hospice licenses. The California Department of Health Care Services uses data tools to halt payments and support prosecutions while coordinating with federal partners (California governor’s office).
Congressional attention and watchdog reports
House committee leaders asked the HHS Office of Inspector General to examine fraud and enrollment weaknesses after auditors found an address listing 112 hospices and reports of $1.2 billion in improper home health payments in 2023. The committee highlighted enrollment vulnerabilities that enable rapid formation and sale of providers before oversight can intervene; an HHS-OIG report due in FY2026 is expected to analyze those weaknesses (House Energy & Commerce letter).
Expert and industry reaction
Industry leaders described the Van Nuys concentration as striking. Sheila Clark, president and CEO of the California Hospice and Palliative Care Association, told reporters: “You can’t throw a rock without hitting a hospice.” Dr. Ira Byock, a leading palliative-care physician, said enforcement has been overwhelmed by the speed and scale of alleged fraud, a point echoed by federal officials (Hospice News).
CMS Administrator Dr. Mehmet Oz and First Assistant U.S. Attorney Bill Essayli have warned this alleged fraud preys on seniors and diverts funds intended for patient care, and they say federal teams are building capabilities to investigate and prosecute schemes tied to sham hospice operations (Hospice News; DOJ release).
How fraud schemes work
Investigators describe recurring tactics: listing patients as enrolled when they are not; billing for services that never occurred; using straw owners and shell companies to hide control; and quickly selling or “flipping” licenses to evade oversight. Many of these approaches reappear across the LA County investigations (CBS News project; Hospice News).
Auditors traced agencies to strip malls, empty storefronts and businesses that do not provide medical services; in several instances more than 80 companies shared a single address (CBS News project).
Implications for the Inland Empire, California
Economic: Medicare and Medi‑Cal dollars flow across Southern California. Fraud that diverts funds can reduce resources for legitimate care in the Inland Empire, slow payments to hospitals and hospice providers, and strain budgets for understaffed local agencies (Hospice News; CBS News project).
Political: Lawmakers in Sacramento and regional offices will face pressure to accelerate oversight, speed license revocations and coordinate with federal investigators; local representatives may pursue hearings and tougher enrollment rules (House Energy & Commerce letter; California governor’s office).
Social and cultural: Reports of sham operations can erode trust among seniors and families who rely on hospice and home health services. Community and faith-based networks in the Inland Empire will likely play larger roles in guiding families to vetted providers.
Practical advice for residents: verify hospice providers with California’s Department of Health Care Services, look for local office visits or community referrals, report suspicious activity to state regulators or the HHS‑OIG hotline, ask for documentation of services and visit sites in person (California governor’s office; House Energy & Commerce letter).
Reporting and next steps
Federal and state agencies report they are increasing audits, revoking billing privileges and referring cases for prosecution. Local leaders in the Inland Empire can expect heightened oversight and outreach as investigators pursue suspected Los Angeles Medicare hospice fraud and related schemes.
For detailed coverage and the full project, see the CBS News project. Additional reporting and law enforcement updates are available from Hospice News, the House Energy & Commerce letter, the DOJ release, and the California governor’s office post.
Quote to remember: “The level of alleged fraud and the speed in which it had grown has completely overwhelmed state and federal authorities,” — Dr. Ira Byock, on the challenges investigators face.
