House Oversight Republicans Seek Records From Newsom on California Hospice Fraud Oversight
House Oversight Republicans have sent a formal records request to Gov. Gavin Newsom seeking details on California’s oversight and internal controls for federally funded hospice programs after reporting found extreme “clustering” of licensed providers—state records tied as many as 89 hospices to a single three‑story Los Angeles office (other reviews found up to 147 providers at that address and a state auditor previously flagged more than 150 agencies there), and federal inspections documented nearly 400 violations at 75 companies. Newsom’s office highlights a 2021 moratorium and a multi‑agency Hospice Fraud Task Force that it says has revoked over 280 licenses and has about 300 providers under investigation, while HHS’s OIG estimates roughly $198.1 million in suspected hospice fraud nationally.
📌 Key Facts
- House Oversight Republicans have launched a congressional investigation into alleged "rampant hospice fraud" in California and sent a formal document request letter to Gov. Gavin Newsom seeking records and communications about the state's oversight and internal controls for federally funded hospice programs.
- The Oversight Committee framed the probe as addressing "rampant taxpayer fraud" and exploitation of vulnerable patients; Congress cited a CBS investigation in launching the inquiry.
- Reporting highlights extreme "clustering" of hospice and home‑health providers at a Van Nuys three‑story building (Merabi Professional Medical Plaza): CBS identified 89 hospices licensed to a single three‑story office building, Fox found 50 hospice companies and 97 home‑health agencies (147 providers) registered to the address, and a 2022 California State Auditor report previously documented more than 150 agencies there and warned the number exceeds the building's apparent physical capacity—advocates and auditors call such clustering a major fraud red flag.
- Federal inspection records (2021–2025) show regulators visited the building repeatedly and found nearly 400 violations across 75 companies housed there.
- CBS's prior investigation found more than 700 of roughly 1,800 Los Angeles County hospices triggered multiple state‑defined fraud red flags; nationally, the HHS Office of Inspector General estimated $198.1 million in suspected hospice fraud in 2023.
- Federal law requires hospices to maintain a physical office and California law allows license revocation if facilities move without notifying regulators, providing a regulatory basis for enforcement actions.
- Newsom's office responded that California imposed a 2021 moratorium on new hospice licenses, created a multi‑agency Hospice Fraud Task Force, and says enforcement has resulted in more than 280 license revocations and about 300 additional providers under investigation in the past two years; the building's owner, Kambiz Merabi, says his records show only about 12 hospices actually operating there and that he markets the property as a virtual office address.
📊 Relevant Data
Among Medicaid-only decedents in the US, hospice use rates are lower for Black (34.7%) and Hispanic (37.5%) individuals compared to White (44.5%) individuals, with population percentages approximately 13% Black, 19% Hispanic, and 60% White nationally.
Racial and Ethnic Differences in Hospice Use Among Medicaid-Only Enrollees — JAMA Health Forum
Van Nuys, California, the location of a building with clustered hospice providers flagged for fraud, has a population that is 63% Hispanic, 22% White, 7% Asian, and 5% African American.
California officials have requested a civil rights investigation into federal hospice fraud probes, alleging they may disproportionately target racial minority communities.
California Calls for Civil Rights Investigation into CMS’ Hospice Fraud Hunt — Hospice News
In California, Latino seniors are covered by Medi-Cal at a rate of 35%, similar to rates for AAPI, Black, and Native American seniors, compared to lower rates for White seniors, with Latinos comprising about 39% of the state's population.
Medi-Cal on the Chopping Block: Key Facts About Medi-Cal Beneficiaries — UCLA Latino Policy & Politics Institute
📊 Analysis & Commentary (1)
"An opinion response arguing that the hospice system’s drift toward medicalization, bureaucracy and profit shifts heavy caregiving burdens onto families and betrays hospice’s original, compassion‑centered mission, echoing reporting about hospice industry fraud and structural problems."
📰 Source Timeline (5)
Follow how coverage of this story developed over time
- Confirms that Republicans on the House Committee on Oversight and Government Reform have sent a formal letter to Gov. Gavin Newsom demanding documents and communications about California’s oversight and internal controls for federally funded hospice programs.
- Quotes the committee’s framing that Californians’ hospice programs involve 'rampant taxpayer fraud' and that vulnerable patients are being exploited, sharpening the political language around the probe.
- Includes a detailed response from Newsom’s spokesperson emphasizing that California imposed a moratorium on new hospice licenses in 2021 and created a multi‑agency Hospice Fraud Task Force, which the governor’s office says has led to more than 280 license revocations and about 300 additional providers under investigation over the past two years.
- House Republicans on the Oversight Committee have formally launched a congressional investigation into alleged 'rampant hospice fraud' in California, focusing on Southern California providers.
- The Committee sent a document request letter to Gov. Gavin Newsom seeking details on California’s 'oversight and internal controls' for federally funded hospice programs.
- CBS’s prior hospice investigation is now being cited by Congress; it found more than 700 of roughly 1,800 Los Angeles County hospices triggered multiple state-defined fraud red flags.
- HHS OIG reported an estimated $198.1 million in suspected hospice fraud nationally in 2023, underscoring the scale beyond California.
- Newsom’s office points to a 2021 state moratorium on new hospice licenses as evidence the state has already acted, while Democrats frame the probe as a partisan diversion from broader cost-of-living issues.
- Fox News Digital review of California state records found 50 hospice companies and 97 home health agencies registered to the Merabi Professional Medical Plaza, for a total of 147 providers tied to the Van Nuys address.
- A March 2022 California State Auditor report is cited as having previously found more than 150 agencies registered to that same building and warning that this number 'exceeds the structure’s apparent physical capacity.'
- The auditor’s report highlighted a roughly 1,500% increase in hospice agencies in Los Angeles County since 2010 and noted the county had 'six-and-a-half times' the nationwide average number of hospice agencies relative to its aged population in 2019.
- CBS‑cited federal inspection data, verified by Fox via federal records, show regulators visited the building repeatedly between 2021 and 2025 and found nearly 400 violations at 75 companies housed there.
- Building owner Kambiz Merabi told CBS he believes the businesses are legitimate and says his records show only 12 hospice companies actually operating at the address, while he markets the property online as a 'virtual office' location companies can pay to use as their address.
- The article notes that federal law requires hospices to have a physical office, and that under California law facilities that move without notifying the government can have their licenses revoked, underscoring a regulatory hook for enforcement.
- The CBS item is essentially the video packaging of the same investigation, reiterating that state records show 89 hospices licensed to a single three‑story Los Angeles office building.
- Advocates quoted by CBS explicitly describe the site as one of the most extreme examples of "clustering," echoing state auditors’ characterization of such patterns as major red flags for possible fraud.
- The article/video text here adds no new numbers, regulatory actions, or identified companies beyond what is already captured in the existing summary.