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California Faces Scrutiny Over Alleged Hospice Fraud

Fifteen hospices registered to one virtual office suite in Van Nuys collected $12.3 million from Medicare and Medi-Cal in 2023-2024, raising significant fraud concerns.

  • On June 18, 2020, 15 hospices were registered to Suite 205 at 14545 Friar St., later collecting $12.3 million from Medicare and Medi‑Cal in 2023–2024.
  • The property and address at Merabi Professional Medical Plaza advertised virtual offices for $99 per month, with suite letters A–P used to create distinct listings, according to property owner Kambiz Merabi.
  • Inspectors found immediate jeopardy at one provider when Patient 9 was ambulatory and five patients risked losing eligibility; that hospice received $1.3 million from Medicare in 2023.
  • Federal and state agencies have decertified providers and are pursuing records as CMS recently froze payments to 10 tenants and decertified three hospices, while California Attorney General Rob Bonta called fraud rates "unacceptable."
  • The regional hospice count climbed sharply between 2018 and 2024, rising from 722 to 1,799 in the five‑county Greater Los Angeles area, while CMS instituted the 36‑month rule and engaged industry stakeholders in 2024.
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The National Desk broke the news in on Tuesday, March 17, 2026.
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