California Revokes 280 Hospice Licenses in Massive Fraud Crackdown

California regulators have revoked more than 280 hospice licenses at a single Van Nuys location after finding systematic fraud that left the state healthcare program exposed to millions in improper claims. The multi-agency investigation discovered that of approximately 128 entities at one address, only 19 were properly licensed to bill Medi-Cal—meaning 109 were operating without ever obtaining a California hospice license.

The California Department of Public Health, Department of Health Care Services, and Tax and Fee Administration conducted compliance reviews revealing that unlicensed operators had been billing Medi-Cal while providing little or no legitimate patient care. Since the 2021 moratorium on new hospice licenses, the state has been scrutinizing what investigators describe as a cottage industry of fraudulent hospice operators targeting dying patients.

State officials say the pattern mirrors other Medicaid exploitation schemes where bad actors open shell businesses at the same address, recruit patients through improper marketing, and submit claims for services never rendered or not medically necessary. The crackdown targets one of the largest concentrations of hospice fraud ever uncovered in the state.

California Medi-Cal beneficiaries and their families should verify their hospice provider's license status through the CDPH website, as regulators continue examining additional addresses for similar patterns.