‘Ripe for Fraud’: CBS Reporter Shocked By 500 California Hospice Offices in 3 Mile Stretch

CBS News correspondent Adam Yamaguchi reported California’s hospice industry is “ripe for fraud,” with some citizens having their identities stolen to fund bogus healthcare schemes while hundreds of questionable hospice offices have raised a regulatory “red flag.”

Yamaguchi’s report ran on CBS Mornings on Wednesday.

“Companies [are] accused of over-billing, real patients [are] denied care, and it’s costing hundreds of millions of taxpayer dollars,” he reported.

He interviewed 69-year-old Dr. Lynn Ianni, who was shocked to find out her Medicare insurance wouldn’t cover a pickleball injury; she later found out her medicare number had been ripped off and used by a company to enroll her in hospice.

“I said, ‘What? What are you talking about?” Ianni told CBS. “Just to think you’re literally without coverage because of some ridiculous, fraudulent thing.”

Yamaguchi reported there are 1,773 hospice companies in Los Angeles County alone and that a CBS News investigation found more than 700 of them showed “signs of potential fraud.” Those signs include multiple hospice facilities packed into one location, and providers discharging a number of patients alive.

He then took hospice care advocate Sheila Clark on a tour of hospice offices in LA. Yamaguchi reported there were about 500 hospice offices in a three-mile stretch.

“You can’t throw a rock without hitting a hospice,” Clark said.

She then choked up and said she was “very sad” when they stood in front of one supposed hospice office that was empty and had piles of mail lying on the ground.

Yamaguchi’s TV report came after he was one of several CBS journalists to report the story on Tuesday. He shared the byline with Rachel Gold, Laura Geller, and Graham Kates.

Their report found:

Nationwide, the average amount a hospice bills Medicare per patient is $13,200. CBS News found the typical hospice in LA County billed Medicare roughly $29,000 per patient – more than double the national average. The highest rate billed by a single hospice in the county was $74,000 per patient.

CBS News boss Bari Weiss shared the report on X on Tuesday and stunned some prominent people with it.

“Wow,” X owner Elon Musk said.

Fox News anchor Mark Levin shared it and told Weiss to “keep up the good work.” 

Several others chimed in, including The Charlie Kirk Show producer Blake Neff, The Atlantic writer Caitlan Flanagan, and Rep. Kevin Kiley — who just announced he ditched the Republican Party. 

Watch above via CBS News.

New: The Mediaite One-Sheet "Newsletter of Newsletters"
Your daily summary and analysis of what the many, many media newsletters are saying and reporting. Subscribe now!