City of Angels Medical Center during a Federal Raid on August 15, 2008 (Al Seib / Los Angeles Times) |
LOS ANGELES -- Former hospital executives at City of Angels Medical Center will pay $10 million to settle a civil suit.
The lawsuit, filed by the U.S. Attorney, claims that Robert Bourseau and Dr. Rudra Sabaratnam paid recruiters to bring homeless people to the hosptial for unnecessary medical treatment.
The facility would then bill Medicare and Medi-Cal for those treatments, defrauding the state and 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 later this month.
Many of those homeless patients were paid around $100 to come into the hospital by recruiter Estill Mitts.
He 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.
The lawsuit, filed by the U.S. Attorney, claims that Robert Bourseau and Dr. Rudra Sabaratnam paid recruiters to bring homeless people to the hosptial for unnecessary medical treatment.
The facility would then bill Medicare and Medi-Cal for those treatments, defrauding the state and 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 later this month.
Many of those homeless patients were paid around $100 to come into the hospital by recruiter Estill Mitts.
He 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.
