Story perspectives

California Cracks Down on Hospice Fraud Amid Scandal

3/20/2026

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Summary

Story summary

A CBS News report highlights hospice fraud in Los Angeles at the Merabi Professional Medical Plaza, allegedly housing 89 licensed hospice companies.
Building manager Kambiz Merabi says only 12 operate there.
Federal officials say 60% of enrolled California hospice agencies lost Medicare billing privileges.
The Centers for Medicare & Medicaid Services (CMS) launched a Fraud Defense Operations Center.
California officials, including Attorney General Rob Bonta, are committed to eradicating fraud.

History

Historical Context

The Medicare Fraud Prevention Act of 2009 aimed to reduce healthcare fraud, leading to increased scrutiny of providers. By 2021, 60% of California hospice agencies lost Medicare billing privileges due to fraudulent practices. This ongoing issue highlights the challenges in regulating hospice care and emphasizes the need for continued vigilance and reform in healthcare oversight, as seen in recent fraud allegations at the Merabi Professional Medical Plaza.

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Story summary

A CBS News report highlights hospice fraud in Los Angeles at the Merabi Professional Medical Plaza, allegedly housing 89 licensed hospice companies.
Building manager Kambiz Merabi says only 12 operate there.
Federal officials say 60% of enrolled California hospice agencies lost Medicare billing privileges.
The Centers for Medicare & Medicaid Services (CMS) launched a Fraud Defense Operations Center.
California officials, including Attorney General Rob Bonta, are committed to eradicating fraud.

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