CBS News Exposes Staggering Hospice Fraud In Deep Blue State

A bombshell investigation from CBS News is shining a light on a multi-million-dollar, seemingly fraudulent scheme involving hospice care facilities in Los Angeles.

A state audit in 2021 identified a 1,500 percent rise in hospice companies since 2010, exceeding the national average by more than six times when adjusted for the elderly population, the outlet noted. As of 2026, the county hosts approximately 1,800 licensed hospices, six times the national average relative to seniors.

Upon review, CBS News found that 42 percent of these hospices, or 742 companies, exhibit multiple red flags defined by state guidelines, such as clustering in small areas, low patient counts, high discharge rates of patients alive, excessive billing, and shared staff across providers.

Nearly 500 hospices are concentrated within a 3-mile radius, the densest in the county, with 137 along Van Nuys Boulevard alone. Over half of these businesses displayed red flags indicating fraud when scrutinized.

“Large clusters of providers in one location suggest that the supply of providers may exceed the patient needs in that location. The providers may actually be billing for services to patients not located in the area or who are not eligible for hospice services,” state auditors noted in a 2022 report.

Billing patterns further highlight issues. The average LA County hospice bills Medicare $29,000 per patient, double the national average of $13,200, with some reaching $74,000. Seven hospices reported zero patients in 2024 but still billed Medicare.

Nationwide, hospice fraud amounted to $198.1 million in 2023, according to the U.S. Department of Health and Human Services Office of the Inspector General. In LA County, overbilling reached $105 million in one year, per the 2021 audit.

Federal estimates suggest LA County’s hospice fraud totals $3.5 billion annually.

Common fraud schemes involve enrolling ineligible patients, stealing Medicare numbers, and billing for unprovided services. For instance, patients may be fraudulently enrolled, thus denying them coverage for other treatments.

CBS News also determined that a number of the suspicious hospice facilities shared staff. For example, 75 individuals claim to work at five or more hospices, including one medical director at 45. Areas like Van Nuys, Glendale, Burbank, and North Hollywood were identified as hotspots for these discrepancies.

The outlet also provided specific examples, including the case of Lynn Ianni, a 69-year-old active individual, who discovered that her Medicare number was used for fraudulent enrollment. “They said, ‘you’re in hospice.’ And I said, ‘what? What are you talking about?’ Ianni said. ‘Are you kidding me? Do I look like I’m in hospice?’”

Legal action has been taken against hospice care fraudsters, though the action has been limited given the spoke of suspected fraud. Four California residents were sentenced in November 2025 for a $16 million scheme involving sham hospices and money laundering. Another case in January 2026 involved a man pleading guilty to a $54 million fraud with radiology and hospice elements, pocketing $23 million.

Federal involvement escalated in 2026. CMS Administrator Dr. Mehmet Oz highlighted a four-block area with 42 hospices and estimated $3.5 billion in fraud. “In this four-block area in Los Angeles, there are 42 hospices. So, either there are a lot of people dying here, or you’ve got fraudulent activity that is so good that everyone wants to get in on it. What we have learned is there is roughly $3.5 billion of fraud taking place here in Los Angeles in hospice and home care. It’s run, quite a bit of it, by the Russian-Armenian mafia,” he said.

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