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Los Angeles is at the center of a recent exposé uncovering rampant hospice fraud across the county. CBS News recently released a deep dive into the fraud, revealing that several companies are showing red flags that have largely been ignored.
There are about 1,800 licensed hospice providers in Los Angeles County, which is roughly six times the national average when adjusted for the size of its elderly population, according to CBS News. In 2022, California’s state auditor sounded the alarm as LA County saw a 1,500% increase in hospice companies since 2010.
In a letter to Democratic California Gov. Gavin Newsom and state legislators dated March 29, 2022, the California state auditor flagged that there had been “a rapid increase in the number of hospice agencies with no clear correlation to increased need.”
Other flags included “excessive…
This type of fraud targets the supply chain and accounts payable departments of businesses.
- Invoice Manipulation: Criminals intercept a legitimate invoice between a supplier and a client and change the banking details to their own. The client pays the bill thinking they are paying their trusted vendor.
- Kickbacks and Bribery: A vendor secretly pays an employee of the purchasing company to ensure their bid is successful or to overlook inflated pricing.