CBS Wakes Up to California’s Hospice Fraud Scandal [WATCH]

A CBS News investigation into hospice care billing in California is drawing attention to potential irregularities in the state’s system, including one physician tied to tens of millions of dollars in Medicare claims.

During Tuesday’s broadcast of CBS Mornings, correspondent Adam Yamaguchi presented the second part of an ongoing investigation focused on hospice services in California.

The report followed an earlier segment that aired in March and continued examining billing practices within the state’s hospice network.

Introducing the segment, Norah O’Donnell said the network’s investigative team had identified possible concerns.

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“Our investigative unit found some potential red flags,” she said, adding that “one hospice doctor having submitted claims for more than 20 times the number of patients the average California doctor cares for in a year.”

The report centered on Dr. Rajiv Bhuva, a physician in the Los Angeles area whose name appeared on claims connected to a large number of hospice facilities.

Yamaguchi said, “The state of California says that if a doctor is involved with any more than, like, even just a few hospices, it is a sign of potential fraud.”

He added that Bhuva stood out among physicians working in hospice care.

“At the heart of the industry are doctors who are trusted to sign off on care, but in records for the active physicians caring for terminal patients one stands out, a man whose name appeared on claims from 126 hospices and had 60 percent more in Medicare reimbursements than the next closest doctor in 2024 – the last full year of available data – Dr. Rajiv Bhuva.”

As part of the investigation, Yamaguchi visited multiple hospice facilities linked to Bhuva’s name.

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At one location, when asked how often Bhuva was present, a staff member responded, “I didn’t see him in a long time.”

At another facility, Yamaguchi attempted to confirm Bhuva’s association with the organization.

The exchange included several responses from staff:

YAMAGUCHI: “We understand that Dr. Rajiv Bhuva is the medical director here, and we’re trying to get some information about him.”
RECEPTIONIST: “He’s not.”
YAMAGUCHI: “He’s not?”
RECEPTIONIST: “No.”
YAMAGUCHI: “Was he at some point?”
NURSE: “Yes, he was.”
YAMAGUCHI: “But you’re telling me he’s longer associated with you guys?”
NURSE: “No, close the door.”
YAMAGUCHI: “Was he at some point?”
NURSE: “No, close the door, thank you.”
RECEPTIONIST: “Thank you.”

Yamaguchi reported that similar responses were encountered at other facilities visited during the investigation.

He said the team sought to understand how Bhuva could be connected to such a large number of providers, noting that claims associated with his name totaled approximately $71 million in 2024 across the Los Angeles area.

The scale of the claims stood in contrast to typical figures in the state. “On average in California, a hospice doctor claims for about 140 patients in a year,” Yamaguchi said.

“In 2024, claims with Bhuva’s name were submitted for nearly 2,800 terminally ill patients.”

To assess the situation, Yamaguchi interviewed Dr. Kristina Newport of Penn State Health Milton S. Hershey Medical Center.

Newport said, “There’s no reason to think it is legitimate.”

She added that properly evaluating such a large number of patients would be difficult.

“If someone is really effectively evaluating the plan of care for every patient that they admit to the hospice, which is their job and their responsibility, they, you know, would have a superhuman schedule to do that in a meaningful way.”

The report also noted that several hospice providers connected to the claims have lost Medicare certification.

According to Yamaguchi, regulators cited “an abuse of billing, a pattern of submitting improper claims.”

CBS reporters attempted to contact Bhuva directly.

“We reached out to him on the phone and e-mail, but couldn’t connect, so we headed to Dr. Bhuva’s home address,” Yamaguchi said.

He added that Bhuva acknowledged that being affiliated with multiple hospices is not illegal.

“Dr. Bhuva came out. He said that being affiliated with dozens of hospices is not illegal. And I – and I said you’re correct. There’s nothing in the law that prevents someone from being affiliated with many, but, again, it raises flags, and that’s what I have questions about. Bhuva said he wanted to see our information. Until then, he said he wouldn’t talk any further.”

Following the report, O’Donnell described the investigation as raising significant questions, while co-host Gayle King said additional attention would likely follow.

Yamaguchi noted, “One of the things that’s so shocking about all of this is that it appears to be hiding in plain sight,” adding that CBS had been “the only ones asking these questions.”

O’Donnell also pointed to broader concerns about healthcare costs, asking, “I think the question that many people have is, why is my health care so expensive? And is it because of fraud that exists out there?”

Yamaguchi concluded by addressing the financial impact. “Ultimately, we, the taxpayers, end up paying,” he said.

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