Pacific Health Corporation officials said they will close their three remaining hospitals this week after allegations that the facilities recruited homeless people to fraudulently bill Medicare.
“Department of Justice officials announced in August that Pacific Health agreed to pay a $16.5 million for allegedly engaging in an illegal kickback scheme in which homeless people were recruited from Los Angeles’ Skid Row to become patients and bilk the system.
As part of the settlement, PHC’s Los Angeles Doctors Hospital pleaded guilty to conspiracy.
The alleged kickbacks were discovered in the same investigation that landed two hospital owners behind bars for running a similar scheme at City of Angels Medical Center. Several people pleaded guilty in that scheme. Co-owners Dr. Rudra Sabaratnam and Robert Bourseau were sentenced to two years and a little over three years in prison, respectively.”
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