In the land of glitz and glamour, where the sun always seems to shine, there seems to be a dark cloud looming over California—and it has nothing to do with wildfires. The word “fraud” rings like an unwelcome alarm in the field of hospice care. The numbers coming out of Los Angeles County are staggering: a whopping 18% of the entire U.S. hospice billing emanated from there last year. But while the percentage might hint that LA has transformed into the hospice capital of the world, the truth is far more sinister.
The Senate has seen fit to fill a new position with a mission to tackle fraud at the federal level with a freshly confirmed deputy attorney general, and the House Oversight Committee is rolling up its sleeves, this time with its sights set firmly on California. It’s an all-hands-on-deck approach to unravel the tangled web of deceit woven around hospice services, something most Americans would expect to be nothing but benevolent.
The investigation in California looks to be uncovering a massive scandal. The size and scale of the suspected hospice fraud dwarf the earlier case in Minnesota. Chairman of the Oversight Committee, James Comr, draws a rather unflattering parallel, suggesting that California’s involvement might be ten times greater than what they’ve seen elsewhere. One might think California’s leaders would find such news a bit unsettling.
Cue Governor Gavin Newsom, who’s now suddenly set on revoking a staggering number of hospice licenses—a noble, albeit a bit belated, act. Over 300 licenses have already bitten the dust, and new ones are on hold. After all, when there’s potentially billions of dollars swirling around in fraud, a little late regulation might just squintingly resemble leadership, right?
While the state’s officials suddenly spring into action, the House Oversight Committee seems determined to get to the bottom of this mess. Following a tried and tested approach from Minnesota, they’re inviting whistleblowers to shine some light on the situation. California may often lead in entertainment and technology, but here’s hoping they don’t lead the nation in fraud as well. As for Governor Newsom, he might want to take a page from some of Hollywood’s courtroom dramas and consider lawyering up. The scene is set for a showdown, and this script is one California likely wishes it could rewrite.

