House Oversight Chair Comer Opens California Hospice Fraud Probe, Tells Gov. Newsom to ‘Lawyer Up’ as CMS and Vance Task Force Suspend 70 LA Providers
House Oversight Chair Rep. James Comer has opened a congressional probe into alleged hospice fraud in Southern California — citing investigations that found dozens (by some counts 89 to more than 150) of hospice and home‑health providers tied to a single Van Nuys building and federal inspections documenting nearly 400 violations — and has demanded documents from Gov. Gavin Newsom, telling him to "lawyer up." At the same time, a federal Task Force led by JD Vance, working with CMS, used an AI‑based system to suspend 70 Los Angeles hospice and home‑health providers, while Newsom’s office points to a 2021 moratorium, a state Hospice Fraud Task Force, more than 280 license revocations and about 300 providers under investigation.
📌 Key Facts
- Investigations and state records link unusually large numbers of hospice and home‑health providers to a single Van Nuys address (Merabi Professional Medical Plaza): CBS reported 89 hospices tied to the three‑story building, Fox found 50 hospices plus 97 home‑health agencies (147 providers) registered there, and a 2022 California State Auditor report previously found more than 150 agencies at the same building; the building owner says only about 12 hospices actually operate there and markets the site as a paid “virtual office.”
- Federal inspection records (2021–2025) show regulators repeatedly visited the building and found nearly 400 violations across about 75 companies housed there, a pattern advocates and auditors call an extreme example of “clustering” and a red flag for possible fraud.
- Statewide and county data indicate a broader problem in California: the 2022 state auditor reported roughly a 1,500% increase in hospice agencies in Los Angeles County since 2010 and that the county had about 6.5 times the national average number of hospice agencies relative to its aged population; separate reporting found CBS’s investigation flagged more than 700 of ~1,800 L.A. hospices for multiple state‑defined fraud red flags.
- House Oversight Republicans, led by Chair Rep. James Comer, have opened a formal congressional investigation into alleged ‘rampant’ hospice fraud in California, sent a document request to Gov. Gavin Newsom about the state’s oversight and internal controls for federally funded hospice programs, and Comer publicly told Newsom to “lawyer up” and said he wants the governor to testify before the committee.
- Gov. Newsom’s office defended the state’s actions, citing a 2021 moratorium on new hospice licenses, creation of a multi‑agency Hospice Fraud Task Force, more than 280 hospice license revocations in the past two years, and roughly 300 additional providers currently under investigation; Democrats criticized the congressional probe as partisan and distracting from other issues.
- A new federal Task Force to Eliminate Fraud, led by Vice President J.D. Vance and working with CMS Administrator Dr. Mehmet Oz, has deployed an AI‑based fraud detection system nationally; the task force and CMS used that system to identify and suspend 70 hospice and home‑health providers in Los Angeles last month, pausing their federal funding, and officials are hiring CMS technologists to scale the automated suspension process.
- Officials say the same AI ‘template’ was used earlier to withhold $259.5 million in Medicaid funds from Minnesota over related fraud concerns, and Trump and Vance have indicated the task force will focus heavily on Democratic‑led “blue states” while saying red states could also be targeted if fraud is found.
- Regulatory context: federal law requires hospices to maintain a physical office, and California law allows license revocation if a facility moves without notifying regulators—both cited as enforcement hooks amid the clustering and alleged fraud allegations.
📊 Relevant Data
The senior population (65+) in Los Angeles County increased from 10.9% of the total population in 2010 to 15.2% in 2022, representing a 38% growth in that age group, which may contribute to increased demand for hospice services.
Los Angeles County, CA population by year, race, & more — USAFacts
In California, the older adult population (65+) is projected to become more diverse by 2040, with Latino and Asian groups growing the fastest; 59% of Latino older adults and 90% of Asian older adults are foreign-born.
California’s Aging Population — Public Policy Institute of California
The 1965 Immigration and Nationality Act dramatically altered the racial and ethnic makeup of the United States, increasing immigration from Asia and Latin America, which has contributed to population growth and diversity in states like California.
Fifty Years On, the 1965 Immigration and Nationality Act Continues to Reshape the United States — Migration Policy Institute
Among Medicaid-only decedents, Hispanic and non-Hispanic Black individuals had the lowest odds of receiving hospice care, with Hispanic individuals also having higher odds of short hospice stays.
Racial and Ethnic Differences in Hospice Use Among Medicaid-Only Enrollees — JAMA Network
📊 Analysis & Commentary (2)
"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."
"A partisan opinion piece criticizing Gov. Gavin Newsom for alleged inaction on widespread fraud in California (including hospice fraud that prompted House Oversight Republican inquiries), urging a federal interagency task force to root out waste and abuse."
📰 Source Timeline (7)
Follow how coverage of this story developed over time
- Vice President JD Vance has been appointed by President Donald Trump to lead a new federal Task Force to Eliminate Fraud targeting waste, fraud and abuse in federal programs.
- Working with CMS under Administrator Dr. Mehmet Oz, the task force used an AI-based internal fraud detection system to identify and suspend 70 hospice and home health providers in Los Angeles last month as high-risk fraudulent providers, pausing their federal funding within one week.
- Vance and Oz previously announced that $259.5 million in Medicaid funds would be withheld from Minnesota over fraud concerns linked to the Quality Learning Center daycare scandal, and the same AI 'template' is now being deployed nationally.
- The task force is actively hiring CMS technologists to deploy the AI fraud-detection system across the country, shifting CMS from manual dis-enrollment to more automated, rapid suspensions.
- Trump and Vance publicly suggest the task force will focus heavily on Democratic-led 'blue states,' though they say red states will also be targeted if fraud is identified.
- Rep. James Comer used a Fox News 'Hannity' appearance to publicly say suspected hospice fraud in California could be '10 times' what the committee found in Minnesota.
- Comer asserted that about 18% of all U.S. hospice billing last year came from Los Angeles County, far out of proportion to its share of the U.S. population.
- Comer said he wants Gov. Gavin Newsom to testify before the House Oversight Committee and told him to 'lawyer up.'
- Newsom’s office issued a detailed statement defending the state’s record, citing a 2021 moratorium on new hospice licenses, creation of a multi‑agency Hospice Fraud Task Force, revocation of more than 280 hospice licenses in the past two years, and about 300 additional providers under investigation.
- The Fox piece highlights that independent journalist Nick Shirley’s videos on alleged hospice (and daycare) fraud in California were a catalyst for the Republican probe and have drawn pushback from Newsom’s press office, which posted a mocking image of Shirley that he publicly blasted on X.
- 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.