Friday, January 29, 2010

INDUSTRY NEWS: Ex-hospital executives settle medicare scandal

Ex-City of Angels Medical Center hospital execs in Los Angeles have settled a civil lawsuit filed by the US Attorney claiming that the execs paid recruiters to bring homeless people to the hospital for unnecessary medical treatment.
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EX-HOSPITAL EXECUTIVES SETTLE MEDICARE SCANDAL

LOS ANGELES – Former hospital executives at City of Angels Medical Center will pay $10 million to settle a civil lawsuit. The lawsuit, filed by the U.S. Attorney, claims that Robert Bourseau and Dr. Rudra Sabaratnam paid recruiters to bring homeless people to the hospital for unnecessary medical treatment.

The facility would then bill Medicare and Medi-Cal for those treatments, defrauding the state and US Federal government out of millions of dollars. Both Bourseau and Sabaratnam pleaded guilty to criminal charges and will pay restitution. Both will be sentenced to prison time in February 2010. Many of those homeless patients were paid around $100 to come into the hospital by recruiter Estill Mitts. Mittis claims to have received $20,000 a month in kickbacks for the delivery of between 30 and 50 patients a month. In September 2008, Mitts pleaded guilty to conspiracy to commit health care fraud, money laundering and tax evasion for his role in the scheme. Also facing charges is Dante Nicholson, the hospital's former senior vice president. He faces up to 10 years in prison.

Source: Lawday

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