Van Nuys Building Linked to Hospice Fraud Investigations

A nondescript office building in Van Nuys, California, has emerged as a focal point in investigations into widespread fraud within the state's hospice industry, where 89 licensed providers share a single address despite the facility's limited space. The Merabi Professional Medical Plaza, a three-story, 32,000-square-foot structure, houses dozens of these companies alongside other businesses like a law office and a modeling agency, prompting concerns over the misuse of taxpayer-funded Medicare and Medi-Cal programs.

State records list the Friar Street address for these 89 hospice providers, a phenomenon known as clustering that auditors flag as a strong indicator of potential fraud. Patient advocate Sheila Clark, who has tracked such issues, described the site during a recent visit as defying logic. "This particular building I noticed, I'm like, dang, how can there be that many licensed and certified hospices in this tiny little building?" she said. Clustering suggests an imbalance where the number of agencies outstrips available patients needing end-of-life care, often leading to overbilling or services not rendered.

Federal regulators have scrutinized the building multiple...