A CBS News analysis of records for every hospice operating in Los Angeles County has found that indications of fraud are growing, marking what watchdog groups describe as a concerning trend in one of the nation's largest hospice markets.
The analysis, which reviewed comprehensive records across all hospices in the county, identified patterns consistent with fraudulent billing practices, including potential upcoding, unnecessary services, and enrollment of patients who may not have qualified for hospice care. Los Angeles County has one of the highest concentrations of hospice providers in the United States.
What the Left Is Saying
Progressive advocates and Democratic lawmakers have long called for stronger oversight of hospice providers, arguing that inadequate regulation has allowed bad actors to exploit vulnerable patients. Patient advocacy groups aligned with Democratic priorities say the findings underscore the need for more robust federal and state enforcement.
Senator Jacky Rosen of Nevada, who has championed healthcare fraud legislation, said stronger auditing mechanisms are needed to protect patients. The National Hospice and Palliative Care Organization, while acknowledging concerns about fraud, has emphasized that the vast majority of hospice providers deliver legitimate, compassionate care.
Advocates for patient rights argue that fraud not only wastes taxpayer money but can also delay or deny appropriate care for dying patients. They have called for increased funding for the Department of Health and Human Services Office of Inspector General to conduct more frequent audits.
What the Right Is Saying
Conservative lawmakers and fiscal hawk organizations say the findings highlight the need for greater accountability and market discipline in the hospice industry. They argue that excessive regulatory burden on legitimate providers can increase costs without preventing fraud.
Senator Bill Cassidy of Louisiana, who serves on the Senate Finance Committee, has emphasized that fraud prevention should focus on data-driven enforcement rather than new bureaucracy. The Foundation for Government Accountability, a conservative think tank, has argued that licensing reform and tighter eligibility verification could reduce fraud without new spending.
Industry groups have resisted some proposed regulations, arguing that compliance costs are passed on to patients and families. Some conservative commentators have noted that the growth in hospice providers coincides with the expansion of Medicare Advantage plans, suggesting market reforms could address fraud more effectively than additional enforcement.
What the Numbers Show
The CBS News analysis reviewed records for every hospice operating in Los Angeles County, identifying patterns across multiple providers. While the specific figures were not detailed in the initial report, the analysis found that indications of fraud are growing, suggesting an upward trend in suspicious billing patterns.
Los Angeles County has seen significant growth in the number of hospice providers over the past decade. Medicare spending on hospice care nationally exceeded $22 billion in recent years, with California representing one of the largest shares of spending. The Office of Inspector General has identified hospice fraud as a priority area, with recoveries in the hundreds of millions of dollars annually.
The analysis comes amid increased scrutiny of healthcare fraud more broadly, with the DOJ announcing record recoveries in recent years. Hospice fraud has been a particular focus because of the vulnerable population served and the complex eligibility requirements for hospice care.
The Bottom Line
The CBS News analysis finding growing indications of hospice fraud in Los Angeles County underscores ongoing challenges in healthcare oversight. The county's large and diverse population, combined with the complexity of hospice eligibility, creates an environment where fraudulent activity can flourish.
What to watch: The Office of Inspector General is expected to continue increased enforcement actions. State regulators in California may face pressure to enhance licensing requirements. Legitimate hospice providers are likely to advocate for stronger anti-fraud measures that do not impose undue burden on compliant organizations.
Patients and families considering hospice care should verify provider credentials and check for any enforcement actions through state licensing boards and Medicare certification records.