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Hospice CEO asks Congress how a provider can operate ‘out of a burrito stand in California’ with no oversight

A hospice advocacy group CEO from California recently testified before congressional lawmakers, shedding light on the rampant fraud within the industry in the state. Sheila Clark, the president and CEO of the California Hospice and Palliative Care Association (CHAPCA), expressed concerns about fraudulent hospice providers operating under the radar of regulators.

Clark highlighted the existence of hospices that are merely operating in name, with no patients or staff. This alarming trend points to failures within multiple regulatory bodies, compromising patient protections and burdening taxpayers.

During her testimony before the House Ways and Means Committee, Clark shared shocking examples of hospices that were seemingly non-existent despite passing regulatory inspections. She questioned how such facilities could receive licensure and accreditation without meeting the necessary criteria.

Dr. Lynn Ianni, a licensed psychotherapist, also shared her harrowing experience of being falsely enrolled in hospice care, leading to months of denial of Medicare benefits. She described the terror of being wrongly labeled as terminally ill and the difficulty in accessing necessary care due to the error.


Sheila Clark testifying before House lawmakers.
Sheila Clark told the House Ways and Means Committee that some hospices operate in name only, meaning they have no patients or staff. Ways and Means Committee

The Task Force to Eliminate Fraud, led by Vice President JD Vance, recently took action against multiple hospices in Los Angeles suspected of fraudulent activities, including suspending 447 hospices over $600 million in potential fraud. These crackdowns underscore the ongoing efforts to combat healthcare fraud on a national level.

Despite the growing concerns, California Governor Gavin Newsom has refuted claims of inaction on his office’s part regarding hospice fraud. He emphasized that the state plays no role in Medicare billing or payments and welcomed the Trump administration’s initiatives to address fraud in the healthcare sector.


The Merabi Professional Medical Plaza Building in Van Nuys, where 197 hospices were registered to this address.
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