One dingy Van Nuys office building hides 89 hospice agencies—empty rooms, stacked mail, silent phones—fueling a Medicare fraud epidemic that drains billions from dying Americans.
Story Snapshot
- CBS News uncovers 89 hospices crammed into a single Van Nuys address, all ghosts with no patients or staff.
- LA County hosts 1,800 hospices, 742 flagged for fraud indicators, yet most still operate.
- Assemblywoman Macedo finds 197 at another nearby site, blasting regulatory delays.
- Taxpayers foot massive bills for fake services; vulnerable patients left in the lurch.
CBS Discovers Ghost Hospices in Van Nuys Building
CBS News journalists Andy Yamaguchi and team entered a Van Nuys building registered to 89 hospice companies. They found empty offices, piled-up mail spilling from doors, and dead phone lines. No patients appeared. No staff answered. These shell operations bill Medicare for services never delivered, using stolen provider numbers from the dark web. LA County emerged as ground zero, with 500 hospices clustered within three miles.
State Audit Exposes Licensing Failures Since 2020
California’s 2022 state audit detailed weak controls that birthed organized fraud networks in LA County. From January 2015 to August 2021, regulators fielded 2,100 complaints, including 350 fraud claims, yet issued licenses amid red flags. The Newsom administration knew of issues during approvals. Post-audit, officials revoked over 280 licenses and made arrests via DOJ partnerships. Emergency regulations, due January 1, 2026, remain delayed.
Assemblywoman Macedo Confronts Newsom on Fraud Scale
Assemblywoman Alexandra Macedo (R-Tulare) inspected another Van Nuys address housing 197 hospice agencies. She documented non-functional phones and zero activity, then fired off a letter to Governor Newsom. Macedo cited audit failures and demanded immediate oversight. Her probe aligns with CBS findings, highlighting two separate high-density fraud hubs. Common sense demands prevention over reaction—facts back her push against bureaucratic inertia.
Attorney General Rob Bonta echoed the call: agencies must react to red flags, not merely tally them. His office pursues criminal and civil cases after damage occurs. Newsom’s spokesperson touted revocations and inter-agency efforts, yet 742 flagged hospices persist.
Fraud’s Toll on Patients, Taxpayers, and Legitimate Care
Terminal patients and families face denied access as fraud erodes trust in hospice services. Taxpayers lose millions through bogus Medicare and Medi-Cal claims. Legitimate rural providers battle stigma from urban scams. Short-term, care delays harm the dying; long-term, unchecked crime risks national spread. LA’s lax oversight weakens broader healthcare integrity, inviting federal intervention.
"We visited an LA building with 89 registered hospices. Here's what we found." – CBS News #SmartNews https://t.co/zAIrhCYdq1
— Joe Honest Truth (@JoeHonestTruth) March 19, 2026
State Auditor warned in 2022 that poor controls invite large-scale fraud. CBS confirmed shell companies exploit clustered registrations at dilapidated sites lacking ramps or accessibility. Bipartisan pressure mounts on Newsom, whose defenses ring hollow against on-site evidence and audit data. Real reform protects conservatives’ values: fiscal responsibility and care for the vulnerable.
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 Project
