State Auditor to Investigate Hospice Care Industry, Governor Signs Bill Preventing New Hospice Licenses During Investigation

Sacramento – The State Auditor will investigate the hospice care industry, thanks to Governor Newsom’s signature of Senate Bill 664 on Monday. The law will prevent new hospice licenses for the duration of a statewide, investigative audit of the hospice industry. Senator Ben Allen (D- Santa Monica) authored the new law following media coverage of troubling practices like financial kickbacks to doctors, aggressive recruitment of prospective patients, and exorbitant Medicare spending.

“We must continue supporting high-quality hospice care in our state while shutting down bad actors who are making money off vulnerable patients, their families, and the public,” said Senator Allen. “This investigative work will shed light on problems in the hospice care industry and what can be done to fix them.”

Senator Allen’s audit request was unanimously approved by the Joint Legislative Audit Committee.

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Ben Allen represents the 26th State Senate District, which consists of the Hollywood, Westside, and South Bay communities of Los Angeles County. He chairs the Senate Environmental Quality Committee and the Joint Committee on the Arts.