US EditionCalifornia Faces Scrutiny Over Alleged Hospice Fraud
Fifteen hospices incorporated in one day at a Van Nuys virtual office collected $12.3 million from Medicare and Medi-Cal amid ongoing state and federal fraud reviews.
- On June 18, 2020, 15 hospices were registered to Suite 205 at 14545 Friar St., later collecting $12.3 million from Medicare and Medi‑Cal in 2023–2024.
- The property and address at Merabi Professional Medical Plaza advertised virtual offices for $99 per month, with suite letters A–P used to create distinct listings, according to property owner Kambiz Merabi.
- Inspectors found immediate jeopardy at one provider when Patient 9 was ambulatory and five patients risked losing eligibility; that hospice received $1.3 million from Medicare in 2023.
- Federal and state agencies have decertified providers and are pursuing records as CMS recently froze payments to 10 tenants and decertified three hospices, while California Attorney General Rob Bonta called fraud rates "unacceptable."
- The regional hospice count climbed sharply between 2018 and 2024, rising from 722 to 1,799 in the five‑county Greater Los Angeles area, while CMS instituted the 36‑month rule and engaged industry stakeholders in 2024.
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14 Articles
California Faces Scrutiny Over Hospice Fraud–What to Know
Dr. Mehmet Oz, administrator of the Centers for Medicare and Medicaid Services, posted an Instagram video this week detailing ongoing fraud among hospice and health care facilities in Los Angeles County. Investigations have focused on Los Angeles County, where officials said state regulators did little to stop fraud. Investigators believe the start of the hospice fraud can be traced as far back as 2010. “The normalization of hospice fraud in Ca…
'WOW!' CBS goes full Nick Shirley in California · American Wire News
CBS News is being accused of going “full Nick Shirley” after reporting on alleged Medicare hospice fraud in California. “There’s a stretch in Los Angeles with 500 registered hospice companies within just three miles of each other. And 89 in a single building,” the network said in sharing its video on X. “But when we visited, we found empty offices, piled-up mail, and phone lines dead.” “Medicare hospice fraud can happen in a few different ways,”…
California building with dozens of health care, hospice providers raises eyebrows amid fraud speculation
A single building in Van Nuys, California, is raising eyebrows amid questions about the dozens of hospice providers and health care agencies registered at the address. The Merabi Professional Medical Plaza has been dubbed "ground zero" for Medicare fraud in the hospice industry.The building is three stories and 32,000 square feet, according to CBS News, which recently visited to investigate the hospice companies registered at the Friar Street ad…
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