A shocking investigation by CBS News has revealed a fraudulent scheme in Los Angeles relating to hospice care facilities, costing millions of dollars. This deep-dive examination raises serious questions about the integrity of these services in a predominantly liberal area.
The state audit conducted in 2021 uncovered an astonishing 1,500 percent increase in hospice companies since 2010. This rate is more than six times higher than the national average, especially when adjusted for the elderly population. As of 2026, Los Angeles County is home to approximately 1,800 licensed hospices.
Strikingly, CBS found that 42 percent of these hospices—over 740 companies—exhibited multiple indicators of potential fraud as per state guidelines. These included clustering in small geographic areas, suspiciously low patient counts, high discharge rates of living patients, excessive billing practices, and shared staff among facilities.
An alarming concentration of nearly 500 hospices within just three miles highlights this issue. Specifically, 137 hospices align along Van Nuys Boulevard, with over half showing clear signs of fraudulent activity.
State auditors pointed out that these concentrations suggest a surplus of providers compared to actual patient needs. This raises concerns that billing may be taking place for patients who either do not reside in those areas or are not eligible for hospice care.
The billing practices are equally troubling. On average, hospices in LA County bill Medicare about $29,000 per patient—double the national average of $13,200—while some reach exorbitant levels of $74,000. Some hospices reported zero patients for 2024 but still submitted bills to Medicare.
In the broader context, hospice fraud across the country hit $198.1 million in 2023, according to the U.S. Department of Health and Human Services, with LA County alone recording over $105 million in overbilling for one year.
Federal estimates indicate that hospice fraud in LA County could amount to a staggering $3.5 billion each year. Common schemes involve enrolling ineligible patients, unauthorized use of Medicare numbers, and billing for nonexistent services.
Additional unsettling findings reveal that some suspicious hospice facilities share personnel. For instance, 75 individuals were tied to multiple hospices, with one medical director linked to as many as 45 facilities. Regions like Van Nuys, Glendale, Burbank, and North Hollywood are identified as particular trouble spots.
One notable case involved Lynn Ianni, a 69-year-old woman who discovered her Medicare number had been misused for fraudulent enrollment. Her shocked reaction, questioning why she was suddenly marked for hospice care, underscores the troubling nature of these practices.
Though there have been some legal actions against those involved in hospice fraud, they remain limited in scope. For instance, four Californians were sentenced in November 2025 for a $16 million scheme tied to sham hospices. Another notable case involved a man who pleaded guilty to a $54 million fraud scheme involving both radiology and hospice services.
Increased federal scrutiny began in 2026, led by CMS Administrator Dr. Mehmet Oz, who pinpointed a specific area with 42 hospices, postulating an estimated $3.5 billion in fraud. He remarked, “In this four-block area in Los Angeles, there are 42 hospices. So, either there are a lot of people dying here, or you’ve got fraudulent activity that is so good that everyone wants to get in on it. What we have learned is there is roughly $3.5 billion of fraud taking place here in Los Angeles in hospice and home care.”
