Corporate Compliance

L.A. medical center owners falsely treat homeless, pay $10M

Compliance Monitor, January 27, 2010

Two former owners of the Los Angeles City of Angels Medical Center (City of Angels) paid $10 million to resolve allegations of a Medicare and Medi-Cal fraud scheme, according to a Department of Justice (DOJ) press release.
 
Robert Bourseau and Rudra Sabaratnam, MD, owners of City of Angels, allegedly paid kickbacks to employees at homeless shelters to deliver and admit homeless “patients” by ambulance for medical treatment. Regardless of necessity or request of treatment, City of Angels supplied medical care and billed Medicare and Medi-cal for the sham procedures.
 
According to the DOJ, Bourseau and Sabaratnam pleaded guilty to criminal charges for violating the anti-kickback statute and await sentencing.

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