Rampant Hospice Fraud Uncovered in California

CBS News Investigation Reveals Widespread Abuse of Medicare Funds

Mar. 22, 2026 at 10:40am

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A CBS News investigation has uncovered widespread fraud within California's hospice industry, with over 700 of the roughly 1,800 hospices in LA County triggering multiple red flags for fraud. The report alleges that in one commercial complex, there are 89 licensed hospice companies, raising serious concerns about "clustering" as a tactic to misuse Medicaid funds. Despite these alarming findings, state and local officials have largely turned a blind eye to the issue, leading to outrage from patient advocates and journalists who have tried to expose the problem.

Why it matters

The rampant hospice fraud uncovered in California is a major issue that is costing taxpayers millions of dollars and putting vulnerable patients at risk. The fact that state and local officials have failed to address the problem highlights the need for greater oversight and accountability in the healthcare system.

The details

The CBS News investigation found that in one commercial complex in California, there are 89 licensed hospice companies, a clear sign of "clustering" that state auditors consider a major red flag for potential fraud. Patient advocate Sheila Clark, who has worked to expose allegations of widespread Medicare fraud in the hospice industry, described the building as "ground zero" for the issue. Despite these alarming findings, state and local officials have largely turned a blind eye to the problem, leading to outrage from journalists and others who have tried to expose the fraud.

  • The CBS News investigation was published on March 22, 2026.
  • Last week, the investigation revealed that over 700 of the roughly 1,800 hospices in LA County trigger multiple red flags for fraud.

The players

Sheila Clark

A patient advocate who has worked to expose allegations of widespread Medicare fraud in the hospice industry.

Gavin Newsom

The governor of California, who has been criticized for his lack of action in addressing the rampant hospice fraud in the state.

Nick Shirley

A journalist who has reported on the alleged $170 million in fraud within California's daycare and hospice system.

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What they’re saying

“This particular building I noticed, I'm like, 'dang, how can there be that many licensed and certified hospices in this tiny little building?'”

— Sheila Clark, Patient advocate

“People are over it.”

— Nick Shirley

What’s next

It is unclear what more can and will be uncovered in the Golden State, but by this record, we can only assume things have just gotten started. State and local officials will need to take decisive action to address the rampant hospice fraud and hold those responsible accountable.

The takeaway

The rampant hospice fraud uncovered in California is a major issue that is costing taxpayers millions of dollars and putting vulnerable patients at risk. The failure of state and local officials to address the problem highlights the need for greater oversight and accountability in the healthcare system, and the public is demanding answers.