California is being investigated by a strong congressional committee after the Put up uncovered rampant hospice fraud that’s value 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 Put up’s revelations a number of “ghost” hospices had been allegedly billing the federal government whereas working from buildings which were deserted for years.
The key community included empty storefronts, auto components 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 referring to 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 whole quantity at over $105 million.
The letter mentioned: “Current 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 data.”
It added: “The Committee is worried your administration doesn’t have adequate inside controls to stop and detect fraud and isn’t conducting correct oversight of those hospice applications.
“Consequently, Individuals throughout the nation are paying for California’s rampant hospice fraud and weak 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% enhance in registrations since 2010 — leading to greater than 2,800 suppliers throughout the state.
A Put up investigation earlier this month obtained knowledge detailing a whole bunch of suspect hospices and residential businesses throughout the state, with quite a few cases of businesses listed on the similar location.
St Rita’s House Well being, which knowledge 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 lease” signal exterior.
An analogous 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 Put up contacted a number of of the businesses allegedly working contained in the constructing.
One hung up when requested to substantiate its location, one other mentioned it moved — regardless of nonetheless being listed on the CDPH database on the North Hollywood handle — 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 Put up’s findings had been per what whistleblowers and business 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 Providers, advised the Put up earlier this month: “Thirty to 40% of all of the hospices in America are in Los Angeles, so there’s simply no approach they’re all reliable.”
He swiftly reduce off funds to suspicious operations throughout the town and mentioned each hospice within the state was beneath investigation.
California gubernatorial candidate Steve Hilton advised the Put up: “‘Till I’m governor subsequent January, it’s solely via 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 “unhealthy 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 at this time, stopping unhealthy 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 an extra 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 business.
He mentioned: “Blatant fraud is somebody who simply payments Medicare with out the person figuring out. That’s one factor.”
“However there are organizations making an attempt to do the best factor, however possibly they only are ill-equipped to ship high quality take care of no matter purpose.”
The Home committee has requested Newsom to supply information associated to anti-fraud practices, audits, Medicare billing and different info by April 6.
