Hospice Clustering Sparks Medicare Fraud Scrutiny
A three‑story office plaza in Los Angeles—Merabi Professional Medical Plaza—houses an astonishing 89 licensed hospice agencies, a figure that has caught the eye of regulators. While the building also hosts a salon, a realty firm, and other businesses, the bulk of its tenants are hospice providers.
A Concentration That Raises Eyebrows
- State auditors flag the concentration as a red flag, noting that the number of agencies likely far outnumbers patients in need.
- In 2022, Los Angeles County saw a 1,500% jump in hospice companies since 2010—six times denser than the national average for its elderly population.
Red Flags Within the Agencies
Investigations reveal that many of these agencies exhibit warning signs:
| Indicator | Description |
|---|---|
| Low patient counts | Few patients per agency |
| High discharge rates for terminal patients | Discharging patients prematurely |
| Shared staff across firms | Employees working at multiple agencies |
| Excessive billing | Charges that appear inflated |
CBS News found 72 of the 89 agencies at Merabi Plaza show at least three such red flags.
Federal Scrutiny
- Federal regulators visited the plaza multiple times between 2021 and 2025.
- They uncovered nearly 400 violations across 75 companies, including:
- Patients receiving no care yet being billed.
- Medication records that did not match patient statements.
Owner’s Response
Owner Kambiz Merabi acknowledges discrepancies between public records and his tenant list, claiming only 12 hospices currently occupy the building. He argues that agencies are required to notify authorities of relocations, suggesting the gap may be administrative rather than fraudulent.
The “Ghost Hospice” Debate
Critics argue that these paper companies bill Medicare without providing services, threatening public funds.
- California’s Attorney General, Rob Bonta, has pledged to eliminate such fraud.
- Federal officials emphasize stricter payment checks.
The Bottom Line
Despite the owner’s support for stronger oversight, questions linger about how many agencies are truly operational and whether Medicare reimbursements are being misused. The situation underscores the need for vigilant monitoring of clustered hospice providers to protect vulnerable patients and taxpayers alike.
