Van Nuys: Flight, Film, And Fraud

Widespread fraud in California's hospice care industry

The area's gritty urban atmosphere and landscape have made it a popular location for television shows and movies. However, much like other places in California, this appeal is mostly superficial. If you look deeper, you'll find that underlying issues of filth and crime begin to emerge.

A CBS News investigation has uncovered evidence suggesting widespread fraud in California's hospice care industry, especially in Los Angeles County. The report examined the licenses and business records of approximately 1,800 hospice care centers in the county, revealing that over 700—about 42 percent—raised red flags for potential fraud.

How can 42 percent of ANY industry be fraudulent? Further, how can a news operation, especially one like CBS, be the one to uncover this? Is there no department of ethics and standards in California to oversee an industry as important as hospice care?

It’s laughable that this discovery comes after the state of California intensified its oversight of the hospice care industry. A 2023 state audit revealed that hospices in Los Angeles County had overbilled Medicare by $105 million in just one year, leading to the revocation of 280 hospice licenses. The auditors were prompted to investigate after noticing a significant 1,500 percent increase in the number of hospice companies since 2010.

Apparently, that oversight wasn’t as in-depth or as intense as necessary. The CBS News report indicates that substantial fraud continues to occur. When reporters visited a building in Van Nuys, Los Angeles, they discovered that 89 hospice care providers were registered there. The building was largely empty, and the mailboxes were overflowing, both signs of fraudulent activity, according to the report.

Recent research indicates that approximately 500 hospices operate within a three-mile radius, with 137 of those located on Van Nuys Boulevard. Federal inspection records reveal that officials identified issues at the Van Nuys facilities during inspections conducted between 2021 and 2025. Additionally, a CBS News study found that about 40 of these hospices shared staff, including administrators, medical directors, and owners.

HUH? 500 within a three-mile radius, and 40 shared the same staff, administrators, medical directors, and owners!

Really? Nothing to see here.

The paper contacted 56 Van Nuys hospice offices and found disconnected phone numbers or invalid dials. Some businesses answered the calls and denied any signs of fraud, claiming they serve real patients. Still. That isn’t the end of the information that should have tipped people off that something was going on.

According to the report, Los Angeles County billed Medicare approximately $29,000 per patient, which is double the national average of $13,200 per patient. The highest amount billed in the county reached $74,000 per patient. Additionally, at least seven hospices submitted bills to Medicare despite having no patients.

One agency apparently decided to cut bait and run. VML, one of the suspect companies, billed roughly $49,000 per patient. The agency shares a building with other hospice centers and shares employees with multiple companies. However, CBS found VML's office building empty with mail piling up at the door. VML stopped billing Medicare in 2024 but still has an active license.

Next door to VML is World Health Hospice, Inc., which was found locked and without a voicemail box, according to a review. It was also noted that at least 75 people were employed across the five listed hospice companies.

California Attorney General Rob Bonta, a Democrat, told the paper that more than 100 people have been criminally charged in the hospice industry since the 2023 crackdown. That said, he acknowledged that additional efforts are necessary.

"We need to be responsive to the red flags and react to them, not just count them. Our main lane is the accountability side, the criminal investigations, and the civil investigations. That's after the damage is done, though, unfortunately.”

This is outrageous but not surprising, given that it’s taking place in California. It’s inexcusable that fraud of this magnitude can not only take place but also thrive. It’s obvious that there are people who are either totally incompetent or extremely adept at looking the other way. In either case, the taxpayers are footing the bill while others are getting rich.