If you or a loved one is considering hospice care, you want to trust that the provider you choose will deliver compassionate, high-quality care. Recent news about hospice fraud investigations in Los Angeles may raise questions. Here's what's happening, what California is doing to protect patients, and how you can make informed decisions about hospice care.

What Happened in Los Angeles

On April 7, 2026, approximately 80 investigators from multiple California state agencies conducted compliance reviews at a location in Van Nuys that had been featured in viral online videos about hospice care concerns.

The agencies involved included:
- California Department of Public Health (CDPH)
- California Department of Health Care Services (DHCS)
- California Department of Tax and Fee Administration (CDTFA)

These onsite reviews are part of California's ongoing effort to protect patients, safeguard public health programs, and ensure hospice services are delivered safely and legally.

Understanding the Numbers: What the Data Shows

When viral claims suggested numerous hospices tied to potential fraud were operating at this Van Nuys address, state investigators reviewed the records. Here's what they found:

Only 19 entities using this address are currently licensed by the state and eligible to bill Medi-Cal for hospice care
109 entities attempting to use this address have never been issued a California hospice license
Nearly 9 out of 10 businesses associated with this address cannot bill the state-run Medi-Cal program for hospice services

How California Stopped Fraud Before It Started

In 2021, California took decisive action by placing a moratorium on new hospice licenses. This prevention strategy worked: approximately 60% of hospice entities trying to operate from the Van Nuys address were denied licenses because of this moratorium.

"We are in Los Angeles County actively investigating hospice providers," said CDPH Director Dr. Erica Pan. "Protecting patients and safeguarding the integrity of our health care system remains our top priority, and we will continue to hold providers accountable."

How California Is Fighting Hospice Fraud

California has taken some of the most aggressive enforcement actions in the nation to protect patients and taxpayer dollars:

License Enforcement

Since the 2021 moratorium, California has revoked more than 280 hospice licenses
An additional 300+ hospice providers are under active investigation
CDPH licenses, oversees, and investigates complaints about hospice providers

Billing Safeguards

DHCS has strengthened protections against fraudulent billing by:
- Requiring independent verification of hospice elections before any claim can be processed
- Using a special indicator code that only appears after documentation is approved
- Auditing Medi-Cal billing to ensure services were actually provided and were appropriate

Multi-Agency Collaboration

"DHCS is shoulder-to-shoulder with CDPH on this effort," said DHCS Director Michelle Baass. "Whether our teams are in the field conducting reviews or verifying enrollment and billing, when we suspect fraud, we act. And when we determine there is a credible allegation of fraud, we refer cases to the California Department of Justice."

CDTFA Director Trista Gonzalez added: "Our focus is on ensuring businesses are operating within the law and that public funds are protected."

Understanding Hospice Care: What Families Should Know

What Is Hospice Care?

Hospice care provides comfort-focused support for people with serious, life-limiting illnesses. The goal is to improve quality of life through:
- Pain and symptom management
- Emotional and spiritual support for patients and families
- Care provided at home, in facilities, or in hospice centers
- A team approach including doctors, nurses, social workers, and counselors

Who Pays for Hospice?

Medicare: Covers hospice for eligible beneficiaries nationwide (administered by the federal government)
Medi-Cal: California's Medicaid program covers hospice for eligible residents (administered by the state)
Private insurance: Many plans include hospice benefits

How to Verify a Hospice Provider

Before choosing a hospice provider, take these steps:

Check licensure: Verify the provider is licensed by CDPH through the state's online license lookup tool
Confirm Medi-Cal enrollment: If using Medi-Cal, ensure the provider is enrolled and in good standing
Ask about services: Understand what care is included, who provides it, and how emergencies are handled
Read reviews and reports: Look for inspection reports, complaints, or enforcement actions
Trust your instincts: If something feels off, ask questions or consider other options

If You Have Concerns About a Hospice Provider

For Patients and Families

If you suspect fraud, abuse, or poor quality care:
- Report it immediately: Contact CDPH's complaint line or submit a report online
- Document concerns: Keep notes about dates, names, and specific issues
- Contact your care team: Speak with the hospice's supervisor or medical director
- Reach out to advocacy groups: Organizations like the California Hospice and Palliative Care Organization can offer guidance

For Healthcare Workers

If you work in hospice and witness concerning practices:
- Follow your organization's internal reporting procedures
- Contact state agencies if internal channels don't resolve the issue
- Know that whistleblower protections may apply

The Bigger Picture: State and Federal Roles

California's Authority

CDPH licenses and inspects hospice providers operating in the state
DHCS oversees Medi-Cal billing and enrollment for hospice services
State agencies investigate complaints and enforce California law

Federal Responsibilities

The Centers for Medicare & Medicaid Services (CMS) administers Medicare, which covers most hospice care nationwide
CMS sets federal standards for hospice participation and reimbursement
Federal agencies investigate Medicare fraud and enforce national regulations

Working Together

California coordinates with federal partners to share information and support program integrity. While the state cannot directly control Medicare payments, it continues to advocate for strong federal oversight and shares data to help protect patients nationwide.

What's Next: Ongoing Enforcement

California's work to prevent and stop hospice fraud is ongoing. Key next steps include:

Continuing onsite inspections and compliance reviews across the state
Investigating complaints from patients, families, and the public
Strengthening licensing and billing safeguards based on lessons learned
Educating providers and consumers about their rights and responsibilities
Coordinating with law enforcement when criminal activity is suspected

Details about active investigations remain confidential to protect the integrity of enforcement efforts. However, the state is committed to transparency about outcomes and systemic improvements.

Resources for Families and Caregivers

Verify Providers and Report Concerns

CDPH Hospice License Lookup: Check if a provider is licensed and in good standing
DHCS Medi-Cal Provider Directory: Confirm enrollment status for state program billing
Stop Fraud California: Report suspected fraud at stopfraud.ca.gov or call the state fraud hotline

Learn About Hospice Care

California Hospice and Palliative Care Organization: Patient guides and provider directories
Medicare Hospice Benefits: Federal information about eligibility and covered services
National Hospice and Palliative Care Organization: Resources for understanding end-of-life care options

Get Support

Local Area Agencies on Aging: Help navigating care options and benefits
Patient advocacy organizations: Assistance understanding rights and resolving concerns
Your healthcare provider: Guidance on when hospice may be appropriate and how to choose a provider

Questions Families Often Ask

"How do I know if a hospice is legitimate?"

Look for:
- Current licensure from CDPH
- Enrollment in Medi-Cal or Medicare (if using those programs)
- Clear information about services, staff qualifications, and emergency procedures
- Willingness to answer questions and provide references

"What if I'm already receiving care from a provider under investigation?"

Continue your care as prescribed unless instructed otherwise by health officials
Ask your provider about the investigation and how it may affect your services
Contact CDPH or DHCS if you have specific concerns about your care quality or billing

"Can fraud affect the care my loved one receives?"

Yes. Fraudulent providers may:
- Enroll patients who don't qualify for hospice
- Bill for services not provided
- Cut corners on staffing or supplies to maximize profits
- Fail to provide the compassionate, comprehensive care hospice is meant to deliver

That's why verification and vigilance matter.

"What protections exist for people who report fraud?"

California law protects whistleblowers who report fraud in good faith. You cannot be retaliated against for reporting concerns to state agencies.

Our Commitment to Transparent, Trusted Care

At Crestwood General, we believe that every family deserves access to honest, high-quality hospice care during life's most challenging moments. Understanding your rights, knowing how to verify providers, and speaking up when something doesn't seem right are powerful ways to protect your loved ones.

If you have questions about hospice care, provider selection, or reporting concerns, talk with your healthcare provider or contact California's state health agencies. Compassionate, accountable care is possible—and you deserve nothing less.

Content provided by Crestwood General.