October 20, 2014
TUSTIN, Calif. (AP) - Pacific Health Corporation officials say they will close their three remaining hospitals, in part because of legal costs associated with allegations hospital administrators recruited homeless people to charge Medicare and Medi-Cal for care.
Spokesman Gary Hopkins says emergency rooms will close Wednesday at Bellflower Medical Center, Los Angeles Metropolitan Medical Center and the Hawthorne campus and Newport Specialty Hospital. The rest of the hospital's services will close down as soon as all patients can be transferred.
In August, Pacific Health Corporation agreed to pay $16.5 million for allegedly engaging in an illegal kickback scheme where homeless people were recruited from Los Angeles' Skid Row to become patients at the hospital, where some received unnecessary treatment. The hospital's owners have been sentenced to prison time.
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