Saturday, December 13, 2008
Former Hospital CEO In California Pleads Guilty To Health Care Fraud
Dr. Rudra Sabaratnam, 64, of the former CEO of Los Angeles, California-based City of Angels Medical Center, pleaded guilty Friday to health care fraud. He was also ordered to pay $4.1 million in restitution to the Medicare and Medi-Cal programs. According to prosecutors, Sabaratnam hired a headhunter to find homeless people with Medicare or Medi-Cal cards to bring to the hospital for various treatments. The hospital then billed the programs millions in unnecessary or unperformed medical procedures. The fraud occurred between August 2004 and October 2007. Sabaratnam and the recruiter, Estill Mitts, 64, were arrested in August after federal prosecutors issued a 21-count indictment against them. Mitts, who was paid nearly $500,000 in commissions by the hospital, pleaded guilty in September to conspiracy to commit health care fraud, money laundering and tax evasion. Sabaratnam is scheduled to be sentenced June 8 on 2 counts of illegal patient referrals.
I've heard of some pretty off-beat things, but using a recuruiter to bring in homeless folks to perpetuate a fraud is pretty low...