Corporate Compliance

Intercare Health Systems to pay $10 million for False Claims Act violation

Compliance Monitor, June 2, 2010

Intercare Health Systems Inc. (Intercare), former owner of City of Angels Medical Center (City of Angels), will pay a $10 million consent judgement to the United States for fraudulently billing the Medicare and Medi-Cal programs, according to a Department of Justice (DOJ) press release.

City of Angeles allegedly paid kickbacks to patient recruiters who worked at homeless shelters in Los Angeles to deliver homeless clients to the hospital for unnecessary medical treatments. City of Angels violated the False Claims Act by billing Medicare and Medi-Cal for the needless medical treatments, according to the DOJ.

Robert Bourseau and Rudra Sabaratnam, former owners of Intercare, and several others involved in the scheme entered into the $10 million consent judgement in January.

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