House Oversight Committee Probes California Hospice Fraud After CBS Finds Hundreds of LA Providers With Red Flags
House Oversight Committee has opened a formal probe after a CBS investigation found hundreds of Los Angeles hospice providers with state‑defined fraud red flags — including more than 700 of roughly 1,800 LA County hospices and dozens of companies linked to the Merabi Professional Medical Plaza in Van Nuys, where auditors and federal inspections flagged excessive clustering and nearly 400 violations across 75 firms. The committee has sent records requests to Governor Gavin Newsom about California’s oversight of federally funded hospice programs, while federal watchdogs estimate $198.1 million in suspected hospice fraud nationally in 2023, the building owner says many listings are paid "virtual" addresses with only about a dozen hospices actually operating there, and state officials point to a 2021 moratorium on new hospice licenses.
📌 Key Facts
- CBS’s investigation found state records showing 89 hospices licensed to a single three‑story Los Angeles office building; other reporting and state records tie dozens more providers to that Van Nuys address (Fox found 50 hospice companies and 97 home‑health agencies registered to the Merabi Professional Medical Plaza, for 147 providers), and a 2022 California State Auditor report previously found more than 150 agencies registered to the same building and warned the number 'exceeds the structure’s apparent physical capacity.'
- State auditors and consumer advocates characterize the clustering of many hospice licenses at one address as a major fraud red flag; the auditor’s report also highlighted roughly a 1,500% increase in hospice agencies in Los Angeles County since 2010 and said the county had about six‑and‑a‑half times the nationwide average number of hospice agencies relative to its aged population in 2019.
- Federal inspection data, cited by CBS and independently reviewed by Fox, show regulators visited the Merabi building repeatedly between 2021 and 2025 and documented nearly 400 violations across about 75 companies housed there.
- Building owner Kambiz Merabi tells reporters he believes the businesses are legitimate, says his records show only about 12 hospice companies actually operating at the address, and markets the property online as a 'virtual office' that companies can pay to list as their address.
- Federal law requires hospices to maintain a physical office, and California law allows the state to revoke licenses for facilities that move without notifying authorities — providing specific regulatory mechanisms that investigators could use to act on irregularities tied to shared or virtual addresses.
- House Republicans on the Oversight Committee have launched a congressional investigation into alleged 'rampant hospice fraud' in California, citing CBS’s reporting (which found more than 700 of roughly 1,800 Los Angeles County hospices triggered multiple state‑defined red flags) and sending a document request to Gov. Gavin Newsom seeking details on California’s oversight and internal controls for federally funded hospice programs.
- Federal oversight adds national context: HHS’s Office of Inspector General reported an estimated $198.1 million in suspected hospice fraud nationally in 2023, indicating the issue extends beyond California.
- California’s response has been mixed: Gov. Newsom’s office points to a 2021 state moratorium on new hospice licenses as evidence the state has already acted, while Democratic officials and allies characterize the congressional probe as a partisan diversion from broader cost‑of‑living concerns.
📊 Analysis & Commentary (1)
The Hidden Burdens of Hospice Care
"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 (4)
Follow how coverage of this story developed over time
March 23, 2026
9:13 PM
Congress launches investigation into California hospice fraud
New information:
- 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.
March 20, 2026
1:00 AM
California building with dozens of health care, hospice providers raises eyebrows amid fraud speculation
New information:
- 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.
March 19, 2026
1:26 PM
How did 89 hospices end up linked to a 3-story LA building? We went to investigate.
New information:
- 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.