Congress launches investigation into California hospice fraud
A CBS News analysis of Los Angeles County hospice records found indications of fraud are growing. The House Oversight Committee is now investigating.
House Republicans announced Monday that Congress will mount an investigation into "rampant hospice fraud," alleging that potentially tens of millions in taxpayer funds may have been lost in improper payments to Southern California companies.
The Republican-led House Oversight Committee, which has the authority to investigate, has sent a letter to California's Democratic governor, Gavin Newsom, asking for documents related to the state's "oversight and internal controls to detect and prevent fraud for its federally funded hospice programs."
"Recent reporting has revealed alarming evidence of fraudulent activity in California's hospice programs, including agencies overbilling Medicare and fraudulently enrolling beneficiaries without their knowledge," committee members wrote, citing a recent CBS News investigation .
The CBS News report examined business and financial records of every hospice currently operating in Los Angeles County, looking for the warning signs that a 2022 state audit identified as potential indicators of fraud .
The CBS News analysis revealed that over 700 of the roughly 1,800 hospices in LA County triggered multiple red flags for fraud as defined by the state.
"The Committee is concerned your administration does not have sufficient internal controls to prevent and detect fraud and is not conducting proper oversight of these hospice programs," the letter to Newsom states. "As a result, Americans across the country are paying for California's rampant hospice fraud and vulnerable patients are being exploited."