California is being investigated by a strong congressional committee after the Submit uncovered rampant hospice fraud that’s price taxpayers greater than $100 million.
The Home Oversight Committee despatched shockwaves throughout the Golden State on Monday after launching the bombshell probe into widespread Medicare fraud on the West Coast.
The investigation comes off the again of the Submit’s revelations a number of “ghost” hospices had been allegedly billing the federal government whereas working from buildings which have been deserted for years.
The key community included empty storefronts, auto elements retailers and different workplaces that weren’t in use, whereas different addresses didn’t exist in any respect.
The Republican-led Home Oversight Committee demanded all paperwork and communications regarding audits and oversight of federally-funded hospice applications be handed over.
Chair James Comer despatched a damning letter to Governor Gavin Newsom, claiming the state has a “well-documented historical past of fraud in its hospice applications” and estimated the full quantity at over $105 million.
The letter mentioned: “Latest reporting has revealed alarming proof of fraudulent exercise in California’s hospice applications, together with businesses overbilling Medicare and fraudulently enrolling beneficiaries with out their information.”
It added: “The Committee is worried your administration doesn’t have ample inner controls to stop and detect fraud and isn’t conducting correct oversight of those hospice applications.
“In consequence, People throughout the nation are paying for California’s rampant hospice fraud and susceptible sufferers are being exploited.”
The committee mentioned its auditors estimate LA County hospice suppliers overbilled Medicare by no less than $105 million in a single yr, including it had seen a 1,500% improve in registrations since 2010 — leading to greater than 2,800 suppliers throughout the state.
A Submit investigation earlier this month obtained information detailing a whole bunch of suspect hospices and residential businesses throughout the state, with quite a few situations of businesses listed on the similar location.
St Rita’s Dwelling Well being, which information reveals billed Medicare about $4.3 million between 2019 and the first-half of 2025, was registered to a vacant Van Nuys strip mall with a “for hire” signal exterior.
An identical story was about six miles away in North Hollywood, the place one other constructing that was listed as working 12 hospice and residential well being businesses had the identical signal hanging out entrance.
The Submit contacted a number of of the businesses allegedly working contained in the constructing.
One hung up when requested to verify its location, one other mentioned it moved — regardless of nonetheless being listed on the CDPH database on the North Hollywood tackle — and a 3rd went to a voicemail for ”Alexander from Southern California Auto.”
One alleged hospice fraudster had the audacity to indicate off her $4 million Carmel-by-the-Sea dwelling for a information outlet simply days earlier than being arrested and charged with stealing $3.2 million from Medicare.
The Submit’s findings had been in line with what whistleblowers and trade insiders have described elsewhere — an epidemic of medical scams, notably in and round Los Angeles.
Dr Mehmet Oz, head of the Facilities for Medicare & Medicaid Companies, instructed the Submit earlier this month: “Thirty to 40% of all of the hospices in America are in Los Angeles, so there’s simply no method they’re all reputable.”
He swiftly lower off funds to suspicious operations throughout the town and mentioned each hospice within the state was beneath investigation.
California gubernatorial candidate Steve Hilton instructed the Submit: “‘Till I’m governor subsequent January, it’s solely by means of federal investigation and enforcement that we are able to anticipate actual accountability for Gavin Newsom, who falsely claims that he’s cleaned up hospice fraud in California.”
Newsom got here out swinging after the investigation was introduced, claiming a moratorium he imposed in 2021 stopped “dangerous actors” coming into the system.
A spokesman mentioned: “In 2021, Governor Gavin Newsom signed laws inserting a moratorium on new hospice licenses – a coverage that is still in impact right this moment, stopping dangerous actors from coming into the system whereas strengthening oversight of current suppliers.
“This work is delivering outcomes, as greater than 280 hospice licenses have been revoked over the previous two years and a further 300 suppliers are beneath investigation.
“The state continues to take coordinated motion to droop Medi-Cal funds, revoke licenses, and pursue prosecutions.”
Skilled hospice supplier Kevin Tutunjian, founding father of Within the Arms of Grace Hospice, acknowledged fraud exists however defended the trade.
He mentioned: “Blatant fraud is somebody who simply payments Medicare with out the person realizing. That’s one factor.”
“However there are organizations attempting to do the suitable factor, however perhaps they simply are ill-equipped to ship high quality look after no matter cause.”
The Home committee has requested Newsom to offer information associated to anti-fraud practices, audits, Medicare billing and different info by April 6.
