Corporate Compliance

Former LA hospital CEO pleads guilty to skid row scheme

Compliance Monitor, December 17, 2008

Former City of Angels Medical Center CEO Rudra Sabaratnam pleaded guilty to charges of paying illegal kickbacks for patient referrals and defrauding Medicare and MediCal, according to a Department of Justice (DOJ) press release.
 
Sabarantnam admitted he, with Estill Mitts, recruited homeless people in the downtown Los Angeles area to receive unnecessary medical treatment, which was then billed to Medicare and MediCal.
 
Sabarantnam agreed to pay $4.1 million in restitution and will appear before a judge on June 9, 2009, for sentencing. He faces up to 10 years in federal prison.

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