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State investigators conduct hospice compliance reviews in Los Angeles County on April 7, 2026, as part of California\u2019s ongoing effort to protect patients and safeguard public programs from fraud.<\/p>\n
As part of ongoing efforts to protect patients and safeguard public health programs, approximately 80 surveyors and investigators from CDPH, DHCS, CDTFA, and partner agencies conducted compliance reviews at a Van Nuys location subject to \u201cviral\u201d videos regarding hospice care.<\/p>\n
While online claims pointed to numerous hospices tied to potential fraud at this location, nearly 9 out of 10 entities that have utilized this address for their business cannot even bill the state-run Medi-Cal program for hospice care.<\/p>\n
A review of state records tied to this location identified the following:<\/p>\n
-Only 19 are currently licensed by the state and are eligible to bill Medi-Cal.
-109 attempting to use this address have never been issued a California hospice license.<\/p>\n
When some of the businesses sought to establish hospices, California stopped them. In 2021, California took decisive action to place a moratorium on new hospice licenses. The state\u2019s prevention efforts worked: Upwards of 60 percent of hospice entities using the Van Nuys address were denied a license because of California\u2019s moratorium.<\/p>\n
Protecting the Hospice System: That hasn\u2019t slowed enforcement. The state treats all reports of regulatory non-compliance, whether received in-person, through the mail, or online as complaints, from members of the public and is inspecting them under its purview as part of its everyday work to protect taxpayers, root out fraud, and increase the quality of hospice care.<\/p>\n
\u201cAs part of our ongoing work, we are in Los Angeles County actively investigating hospice providers,\u201d said\u00a0CDPH Director and State Public Health Officer Dr. Erica Pan. \u201cProtecting patients and safeguarding the integrity of our health care system remains our top priority, and we will continue to hold providers accountable.\u201d<\/p>\n
\u201cDHCS is shoulder\u2011to\u2011shoulder with CDPH on this effort,\u201d said\u00a0DHCS Director Michelle Baass. \u201cWhether our teams are in the field conducting reviews or verifying enrollment and billing, when we suspect fraud, we act. And when we determine there is a credible allegation of fraud, we refer cases to the California Department of Justice. Our shared commitment is protecting Medi\u2011Cal members, safeguarding taxpayer dollars, and ensuring hospice services are delivered safely, legally, and with integrity.\u201c<\/p>\n
\u201cThe Department of Tax and Fee Administration is happy to lend our expertise and support to our partner agencies to review concerns and verify compliance,\u201d said\u00a0CDTFA Director Trista Gonzalez. \u201cOur focus is on ensuring businesses are operating within the law and that public funds are protected.\u201d<\/p>\n
Holding Bad Actors Accountable: Since Governor Newsom\u2019s 2021 moratorium, California has revoked 280+ hospice licenses and placed 300 more under investigation \u2014 among the most aggressive enforcement actions in the nation. In addition to CDPH\u2019s licensing enforcement, DHCS has strengthened hospice billing safeguards by requiring its own verification of hospice elections before any claim can process, using a DHCS\u2011issued indicator code that only appears after documentation is approved.<\/p>\n
Under the Trump Administration, the Centers for Medicare & Medicaid Services (CMS) suspended implementation of the Hospice Special Focus Program, a federally required initiative designed to identify and increase scrutiny of poorly performing hospices. The program would have driven more frequent inspections and stronger federal enforcement.<\/p>\n
CDPH licenses and oversees hospice providers and investigates complaints, and DHCS audits Medi-Cal billing. However, the federal government administers Medicare, which accounts for the vast majority of hospice spending, and they reimburse, monitor, and investigate federal Medicare payments. The state is not involved in Medicare billing or payment processing.<\/p>\n
California welcomes continued partnership with CMS as the federal government advances its own hospice oversight efforts, and will continue to share information and coordinate where appropriate to support shared program integrity goals. California\u2019s work to prevent and stop fraud and hold fraudsters accountable is ongoing, and further details regarding these ongoing investigations will remain confidential to protect the integrity of this critical law enforcement work.<\/p>\n
See how California is fighting fraud in state programs at\u00a0stopfraud.ca.gov, and\u00a0view B-roll of hospice compliance reviews. For more information about the decisive actions California has taken in hospice fraud enforcement, please see the Governor\u2019s\u00a0March\u00a0and\u00a0January\u00a0news releases.<\/p>\n
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