Assemblymember Alexandra Macedo, R-Visalia and other state lawmakers want Gov. Gavin Newsom to bring regulations to the state's hospice industry, which news report say contain rampant fraud. (GV Wire Composite)
- A CBS News investigation says despite years of warnings of fraud in hospice care, the problem has only worsened in LA County.
- A group of Republican state lawmakers called on Gov. Gavin Newsom to implement long-awaited regulations to limit hospice fraud.
- The state was supposed to have new tighter regulations and proper oversight by Jan. 1, the lawmakers said.
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After media reports of what could be widescale fraud in Los Angeles County’s hospice care network, a group of California state legislators, led by Alexandra Macedo, R-Visalia, called on Gov. Gavin Newsom to implement protective measures after years of warnings with no apparent action.
They say the governor failed to meet a Jan. 1 deadline to tighten regulations and oversight.
“Your administration has failed to produce the emergency regulations for hospices that were due January 1, 2026 — to protect patients — after years of extensions,” the letter states. “Patients on hospice are terminal and deserving of comfort, dignity, and pain relief in qualified facilities with licensed healthcare professionals who are subject to rigorous state oversight.”
1,500% Growth in LA Hospice Companies Outpaces National Rate 6 Times
On Tuesday, CBS News published a report about the explosive growth in the Southern California hospice network. The pace of hospice expansion there far exceeds the region’s elderly population, suggesting massive fraud.
This comes after a 2022 report from the California State Auditor’s Office estimated hospices in the region had together overbilled Medicare by $105 million in a single year. A 2020 Los Angeles Times report on the same topic spurred the audit.
CBS News found, while using the same method as the state auditor, the problem has not been remedied. Analysis shows that of the 1,800 hospices in the county, more than 700 trigger multiple red flags for fraud.
For example, one building in Van Nuys houses 89 hospice companies.
And Macedo said she visited one “dilapidated” building where 197 hospice agencies were registered.
In January, Newsom’s office said his office had revoked more than 280 licenses. The state has a moratorium on new hospice licenses.
“Under Governor Newsom’s administration, California has cracked down on hospice fraud, launched partnerships across state agencies, and the California Department of Justice has arrested criminals to hold them accountable,” his office stated in a news release.
Problem Goes Beyond 280 Licenses: Legislators
Signatories on the letter include David Tangipa, R-Clovis, Stan Ellis, R-Bakersfield, and 13 other Republican lawmakers.
It says the problem goes beyond the 280 licenses that have been revoked.
Legislators said the state needs regulations to verify identities of patients and qualifications of hospice personnel.
“It is imperative that you be transparent with the public in how you intend to address the rampant fraud, abuse and state regulation that allows bad actors to take advantage of both taxpayers and our most vulnerable Californians,” the letter stated.





