Fraud Probe Targets Hundreds of California Hospice Agencies

Authorities crack down on suspicious hospice operations across Los Angeles County

Published on Mar. 2, 2026

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A network of hundreds of hospices in Los Angeles County and across California are under investigation for allegedly defrauding taxpayers of tens of millions of dollars. The Centers for Medicare and Medicaid Services is actively cutting off payments to suspicious operations, with the agency's administrator Dr. Mehmet Oz confirming that "every single hospice in California is now under investigation." The probe has uncovered numerous hospice and home health agencies operating out of vacant storefronts, auto parts shops, and other questionable locations, raising concerns about widespread fraud in the industry.

Why it matters

The alleged hospice fraud crisis in California has raised serious concerns about the integrity of the state's end-of-life care system and the potential misuse of taxpayer funds. With Los Angeles County home to nearly half of the nation's hospice providers, the scale of the problem appears to be significant and has overwhelmed state and federal authorities tasked with addressing it.

The details

Investigators have found hundreds of suspicious hospice and home health agencies across California, many of which appear to be operating out of vacant or inappropriate locations. For example, one agency called St. Rita's Home Health billed Medicare and Medicaid over $4 million despite being registered to a vacant strip mall in Van Nuys. Another building in North Hollywood houses 12 different hospice and home health agencies, despite having a large "for rent" sign out front. Authorities say sophisticated new fraud detection tools, including AI, are helping them identify these suspicious operations.

  • In 2023 and 2024, more than $20 million was billed to taxpayers from the North Hollywood building housing 12 hospice and home health agencies.
  • Between 2019 and the first half of 2025, the St. Rita's Home Health Care agency billed Medicare about $4.3 million despite being registered to a vacant location.

The players

Dr. Mehmet Oz

The Centers for Medicare and Medicaid Services Administrator who confirmed that "every single hospice in California is now under investigation."

Dr. Ira Byock

One of the leading palliative care physicians in the country who said the level of alleged fraud has "completely overwhelmed" state and federal authorities.

Sheila Clark

The president and CEO of the California Hospice and Palliative Care Association who has been sounding the alarm on hospice and home health fraud since 2019.

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What they’re saying

“Why would you have three separate hospices in one building – wouldn't you have one? If they don't meet a set of criteria we will cut off the funding; they will have to prove they are legitimate.”

— Dr. Mehmet Oz, Centers for Medicare and Medicaid Services Administrator (nypost.com)

“There are roughly 7,000 hospice programs across the U.S. There are 91 in Florida, 39 in New York – and over 2,800 in California. Many of them have come into existence in California in the last four years.”

— Dr. Ira Byock, Leading palliative care physician (nypost.com)

“They do not look like a licensed and certified home health or hospice. They don't have the right signage posted, they're in an odd location inside of a business that doesn't make sense — an auto body shop.”

— Sheila Clark, President and CEO, California Hospice and Palliative Care Association (nypost.com)

What’s next

The Centers for Medicare and Medicaid Services has vowed to continue its crackdown on suspicious hospice operations, cutting off payments to those that cannot prove their legitimacy. California Attorney General Rob Bonta and the Department of Justice are also expected to ramp up their efforts to address the alleged fraud crisis in the state's hospice and home health care industry.

The takeaway

The widespread fraud allegations in California's hospice industry have exposed serious vulnerabilities in the state's end-of-life care system, raising concerns about the misuse of taxpayer funds and the potential harm to vulnerable patients. This crisis highlights the need for stronger oversight, tighter regulations, and more robust fraud detection measures to ensure the integrity of this critical healthcare sector.