One rundown Los Angeles office building hides 89 hospice companies, all registered to the same address with empty rooms and dead phone lines, fueling a massive Medicare fraud scheme that drains taxpayer dollars from dying patients.
Story Snapshot
- CBS News uncovered 89 hospices crammed into a single Van Nuys building, showing no signs of life or patient care.
- Los Angeles County hosts 1,800 hospices, 742 flagged for fraud indicators yet still operating.
- Assemblywoman Alexandra Macedo found 197 at another nearby address, blasting regulatory delays.
- Governor Newsom’s administration revoked over 280 licenses but missed the January 1, 2026, emergency regulation deadline.
Van Nuys Building Reveals Ghost Hospices
CBS News journalists entered a Van Nuys office building and documented 89 hospice companies listed at that address. They found empty offices, piled-up mail spilling from doors, and phone lines that rang endlessly without answer. No patients appeared, no staff worked, and accessibility features for the terminally ill were absent. This clustering enables shell companies to bill Medicare for services never provided, using stolen provider numbers often sourced from the dark web.
Hospice Explosion in Los Angeles County
Los Angeles County registers about 1,800 hospice agencies, far exceeding needs for its population. State data flags 742 with fraud indicators like suspicious billing patterns or clustered addresses. Investigators noted 500 agencies within three miles of the Van Nuys site. Dilapidated buildings like Medical Plaza lack ramps or elevators required for hospice patients, confirming operations exist only on paper to exploit Medicare and Medi-Cal funds.
Historical Surge and Regulatory Failures
A 2020 Los Angeles Times investigation exposed widespread hospice abuse in California. From January 2015 to August 2021, the state received 2,100 complaints, including 350 fraud claims, yet issued licenses despite warnings. The 2022 state audit condemned weak controls that allowed organized networks in LA County to thrive. Newsom’s team revoked over 280 licenses and made arrests through the DOJ, but emergency regulations due January 1, 2026, remain delayed, leaving 742 flagged agencies active.
Key Players Demand Accountability
Assemblywoman Alexandra Macedo (R-Tulare) inspected a different Van Nuys building housing 197 hospices, found identical red flags, and wrote Governor Newsom demanding immediate rules. Newsom’s spokesperson highlighted revocations and partnerships. Attorney General Rob Bonta urged reacting to red flags proactively, calling post-fraud enforcement insufficient. The Department of Public Health faces criticism for licensing lapses. Legitimate rural hospices suffer stigma from these schemes.
We visited an LA building with 89 registered hospices. Here's what we found. – CBS News https://t.co/kcg2q5BYnU
— Rich Newbold (@drnewbold) March 19, 2026
Common sense aligns with Macedo’s push for swift oversight; delayed regulations protect fraudsters over taxpayers and vulnerable families, a failure conservative values reject in favor of strong, preventive governance.
Impacts Rip Through Patients and Taxpayers
Terminal patients and families face care shortages as fraud clogs the system and erodes trust. Taxpayers lose millions to ghost billing. Legitimate providers struggle with tainted reputations, especially in underserved areas. Politically, bipartisan pressure mounts on Newsom for reforms. Long-term, weak oversight risks national spread, inviting federal intervention and deeper Medicare losses from organized crime.
Sources:
Valley assemblywoman finds 197 hospice agencies registered at one LA address
Hospice fraud report: Los Angeles CBS report LA County empty offices piled mail
CBS News Hospice Fraud Investigation
