Nearly 200 Hospice Agencies Tied to Van Nuys Address, According to Lawmaker
Audit Raises Concerns Over Hospice Oversight in California
A recent audit has revealed significant weaknesses in California’s hospice licensing system, prompting calls for immediate regulatory reforms. The findings have intensified scrutiny over the state’s oversight amidst growing concerns about potential fraud and abuse within the hospice sector.
Assemblywoman Alexandra Macedo, R-Tulare, disclosed on Wednesday that 197 hospice agencies are registered at a single Van Nuys address, 14545 Friar St. Macedo visited the location and described it as dilapidated, lacking essential features such as wheelchair accessibility and designated parking.
“This discovery raises serious questions about how our state is overseeing hospice providers,” Macedo stated, emphasizing the need for improved regulation. She argued that these issues reveal significant gaps in oversight under Governor Gavin Newsom’s administration.
In response, a representative from Newsom’s office highlighted the governor’s efforts to combat hospice fraud, mentioning a moratorium on new hospice licenses established in 2021. "That moratorium is still in place—blocking bad actors from entering the system while the state tightens oversight of existing providers," the statement noted.
The governor’s office also pointed to the launch of a multi-agency Hospice Fraud Task Force, which includes various state departments focused on investigating fraud and enhancing cooperation among agencies.
However, the statement did not address the specific findings related to the Van Nuys property. Inquiries have also been made to the Centers for Medicare and Medicaid Services for further comment.
Macedo, along with several Republican lawmakers, has called for emergency regulations as recommended by a 2022 state audit designed to prevent fraudulent activities in hospice licensing. According to the lawmakers, the audit uncovered significant vulnerabilities, including approximately 2,100 complaints filed between January 2015 and August 2021, with nearly 350 alleging fraud or abuse.
The audit suggested that organized networks in Los Angeles County may have been involved in defrauding Medicare and Medi-Cal hospice programs. “It has been four years since the audit report; your Administration has failed to protect families in the most difficult moment of their lives,” the lawmakers stated in their letter to the governor. “Most people have never had to choose hospice before; they do not know what questions to ask, what warning signs to look for, or who to trust. That is why state oversight matters, and right now the system is broken.”
The lawmakers warned that any delay in implementing recommended regulations could jeopardize vulnerable patients and their families while allowing fraudulent entities to exploit the existing system.
