89 Ghost Hospices in One Building

A caregiver holding the hands of an elderly patient in a hospital bed

California’s hospice fraud epidemic drains billions from Medicare, exploiting dying Americans and taxpayers under failed Democrat oversight—now exposed as ghost operations in LA’s Van Nuys.

Story Highlights

CBS News uncovers 89 hospice companies registered to one rundown Van Nuys building with empty offices, piled mail, and dead phone lines.
742 hospices in LA County show state-defined fraud indicators, yet most remain operational amid regulatory delays.
Assemblywoman Alexandra Macedo (R) finds 197 more at another Van Nuys address, demands action from Gov. Newsom.
Taxpayers foot the bill for shell companies billing Medicare for nonexistent services using stolen provider numbers.
Legitimate providers and vulnerable patients suffer from eroded trust and delayed care due to government failures.

Van Nuys: Epicenter of Hospice Fraud

CBS News journalists visited a single building in Van Nuys, Los Angeles, registered to 89 hospice companies. They documented empty offices, piled-up mail outside doors, and non-functional phone lines. No patients, staff, or operational signs appeared at the site. This physical evidence points to shell companies set up solely to bill Medicare for unprovided end-of-life care services. LA County hosts about 1,800 such agencies, making it ground zero for nationwide fraud concerns.

State Regulators Fail to Act Despite Warnings

A 2022 California state audit exposed weak licensing controls that allowed fraud despite 2,100 complaints from January 2015 to August 2021, including 350 fraud allegations. The Department of Public Health granted licenses amid clear red flags. Newsom’s administration revoked over 280 licenses and made arrests through DOJ partnerships, but emergency regulations due January 1, 2026, remain delayed. Today, 742 flagged hospices continue operating, draining Medicare and Medi-Cal funds.

Republican Pushback Against Newsom’s Inaction

Assemblywoman Alexandra Macedo (R-Tulare) inspected another Van Nuys address housing 197 hospice agencies. She sent a letter to Gov. Gavin Newsom blasting the missed regulatory deadline and citing audit failures. Attorney General Rob Bonta echoed concerns, stating authorities must react to red flags rather than merely count them. Critics highlight how post-harm enforcement leaves damage done, while prevention lags. This underscores regulatory gaps exploited by fraud networks.

Fraud operators use dark web-sourced Medicare provider numbers for ghost billing. Dense registrations—500 within three miles—cluster in dilapidated buildings lacking accessibility or activity. Historical probes, like the 2020 LA Times exposé, trace the surge, yet state responses fall short.

Impacts on Taxpayers, Patients, and Honest Providers

Terminal patients and families face denied care as trust erodes in hospice services. Taxpayers lose billions annually to fake Medicare claims, fueling inflation from fiscal mismanagement. Legitimate rural hospices bear stigma, struggling amid the chaos. Long-term, unchecked fraud risks organized crime expansion and national spread from California’s lax oversight. Bipartisan pressure mounts for reforms to protect vulnerable Americans and fiscal integrity.