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State records show 89 hospice companies at one Los Angeles office plaza. We went to look for ourselves.
The Merabi Professional Medical Plaza, a three-story, 32,000 square foot stucco and glass office building in Los Angeles, is home to a salon, a law office, a modeling agency, a realty corporation and, also, 89 licensed hospice companies.
Patient advocate Sheila Clark, who has worked to expose allegations of widespread Medicare fraud in the hospice industry, calls this building "ground zero" for the issue.
"This particular building I noticed, I'm like, 'dang, how can there be that many licensed and certified hospices in this tiny little building?,'" Clark said.
The building is among the most extreme cases of what's known as "clustering" to turn up in a sweeping CBS News investigation — a grouping of large numbers of hospice offices that state auditors consider a major red flag for potential fraud.
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Oz Says California’s Not Fighting Health Care Fraud, but Data Shows It’s Part of a Larger Battle
SACRAMENTO, Calif. — For weeks, Mehmet Oz has been waging a public feud with California leaders over health care fraud, accusing the blue state of failing to adequately combat such abuse.
This story also ran on U.S. News & World Report. It can be republished for free.
Oz, who heads the U.S. Centers for Medicare & Medicaid Services, alleged that there was approximately $3.5 billion of fraud in the hospice and home health care industry in Los Angeles County alone. “This administration under President [Donald] Trump is not going to tolerate taxpayer dollars being stolen because people aren’t paying attention anymore. We’re focused on this,” Oz said. He claimed the fraud was largely orchestrated by the “Russian, Armenian mafia” and said that most of the money spent on home and community-based services across California “might be fraudulent.”
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