House Republicans Probe California Hospice Fraud

House Republicans on the House Committee on Oversight and Accountability have launched a formal investigation into widespread fraud in California's hospice care system, focusing on Los Angeles County where explosive growth in providers has raised alarms about billions in potential taxpayer losses. The probe, detailed in a letter sent to Governor Gavin Newsom on Monday, demands documents and communications from state agencies dating back to 2019 to examine oversight failures in federally funded programs.

The investigation highlights a surge in hospice providers since 2010, when Los Angeles County had 109 agencies serving about 1 million elderly residents. By 2021, that number had ballooned to 1,841 agencies for roughly 1.4 million seniors, accounting for nearly two-thirds of California's total of more than 2,800 providers. This growth far outpaces national trends and has coincided with billing rates more than double the U.S. average. While the national figure stands at about $13,200 per patient annually, Los Angeles County providers average $29,000, with some reaching $74,000. Officials estimate that fraud in the county alone could total $3.5 billion, representing around 18...