California finds itself under scrutiny as a powerful congressional committee has initiated an investigation following revelations of extensive hospice fraud that has reportedly siphoned off more than $100 million from taxpayers.
The House Oversight Committee sent ripples of concern throughout the state on Monday by announcing the probe into the widespread Medicare fraud allegations plaguing the West Coast. This inquiry stems from the findings uncovered by the Post, which revealed the existence of numerous “ghost” hospices falsely billing the government while supposedly operating out of long-abandoned buildings.
This clandestine network is alleged to have involved vacant storefronts, auto parts shops, and other non-operational offices, with some addresses proving to be non-existent altogether. The situation has raised significant concern about the oversight of federally-funded hospice programs.
In response, the Republican-led House Oversight Committee has demanded access to all documents and communications related to the audits and oversight of these programs. The request aims to shed light on the management and regulation of hospice care in California.
Committee Chair James Comer addressed a pointed letter to Governor Gavin Newsom, highlighting the state’s “well-documented history of fraud” within its hospice services. He cited an estimated fraud total surpassing $105 million, underscoring the gravity of the situation and the necessity for thorough investigation and accountability.
Chair James Comer sent a damning letter to Governor Gavin Newsom, claiming the state has a “well-documented history of fraud in its hospice programs” and estimated the total amount at over $105 million.
The letter said: “Recent reporting has revealed alarming evidence of fraudulent activity in California’s hospice programs, including agencies overbilling Medicare and fraudulently enrolling beneficiaries without their knowledge.”
It added: “The Committee is concerned your administration does not have sufficient internal controls to prevent and detect fraud and is not conducting proper oversight of these hospice programs.
“As a result, Americans across the country are paying for California’s rampant hospice fraud and vulnerable patients are being exploited.”
The committee said its auditors estimate LA County hospice providers overbilled Medicare by at least $105 million in a single year, adding it had seen a 1,500% increase in registrations since 2010 — resulting in more than 2,800 providers across the state.
A Post investigation earlier this month obtained data detailing hundreds of suspect hospices and home agencies across the state, with numerous instances of agencies listed at the same location.
St Rita’s Home Health, which data shows billed Medicare about $4.3 million between 2019 and the first-half of 2025, was registered to a vacant Van Nuys strip mall with a “for rent” sign outside.
A similar story was about six miles away in North Hollywood, where another building that was listed as operating 12 hospice and home health agencies had the same sign hanging out front.
The Post contacted several of the companies allegedly operating inside the building.
One hung up when asked to confirm its location, another said it moved — despite still being listed on the CDPH database at the North Hollywood address — and a third went to a voicemail for ”Alexander from Southern California Auto.”
One alleged hospice fraudster had the audacity to show off her $4 million Carmel-by-the-Sea home for a news outlet just days before being arrested and charged with stealing $3.2 million from Medicare.
The Post’s findings were consistent with what whistleblowers and industry insiders have described elsewhere — an epidemic of medical scams, particularly in and around Los Angeles.
Dr Mehmet Oz, head of the Centers for Medicare & Medicaid Services, told the Post earlier this month: “Thirty to 40% of all the hospices in America are in Los Angeles, so there’s just no way they are all legitimate.”
He swiftly cut off payments to suspicious operations across the city and said every hospice in the state was under investigation.
California gubernatorial candidate Steve Hilton told the Post: “‘Until I’m governor next January, it’s only through federal investigation and enforcement that we can expect real accountability for Gavin Newsom, who falsely claims that he’s cleaned up hospice fraud in California.”
Newsom came out swinging after the investigation was announced, claiming a moratorium he imposed in 2021 stopped “bad actors” entering the system.
A spokesman said: “In 2021, Governor Gavin Newsom signed legislation placing a moratorium on new hospice licenses – a policy that remains in effect today, preventing bad actors from entering the system while strengthening oversight of existing providers.
“This work is delivering results, as more than 280 hospice licenses have been revoked over the past two years and an additional 300 providers are under investigation.
“The state continues to take coordinated action to suspend Medi-Cal payments, revoke licenses, and pursue prosecutions.”
Experienced hospice provider Kevin Tutunjian, founder of In the Arms of Grace Hospice, acknowledged fraud exists but defended the industry.
He said: “Blatant fraud is someone who just bills Medicare without the individual knowing. That is one thing.”
“But there are organizations trying to do the right thing, but maybe they just are ill-equipped to deliver quality care for whatever reason.”
The House committee has asked Newsom to provide records related to anti-fraud practices, audits, Medicare billing and other information by April 6.
