State and federal investigators say hospice fraud in Los Angeles County has grown into a widespread problem, with billions of dollars in public funds allegedly lost to false billing, unnecessary services, and patients who receive little or no care. Auditors and prosecutors describe a system in which fraudulent providers exploit regulatory gaps to enroll individuals who may not qualify for hospice services.
Federal officials have raised alarms about the rapid growth of hospice providers in the region. Dr. Mehmet Oz, administrator of the Centers for Medicare and Medicaid Services, said hospice operations in Los Angeles have expanded dramatically in recent years, accounting for a large share of suspected fraud nationwide. California Attorney General Rob Bonta has similarly warned that hospice fraud has reached crisis levels in the greater Los Angeles area.
Investigators allege that some providers submit false claims, pay recruiters to enroll seniors regardless of medical eligibility, and bill Medicare for patients who are unaware they have been placed in hospice care. Whistleblowers have said the licensing process allows individuals to establish hospice agencies with minimal oversight, contributing to the rapid proliferation of providers.
Authorities say fraudulent schemes often rely on recruiters who target seniors in public places and offer incentives in exchange for Medicare information. That information is then allegedly sold to hospice operators, who bill Medicare daily rates and, in some cases, inflate charges through improper coding practices. While hospice care is intended for patients with a life expectancy of six months or less, records show some providers billing for significantly longer periods.
Los Angeles County currently has nearly 2,000 licensed hospice agencies, far more than most states, with some densely concentrated in small geographic areas. California has imposed a moratorium on new hospice licenses, but regulators say hundreds of questionable providers remain active. Advocates warn that fraudulent practices ultimately harm vulnerable seniors by diverting resources away from legitimate care, underscoring the need for stronger oversight and enforcement