Hospital Chain Puts Up $16M To End Skid Row Kickbacks Case

Law360, New York (August 24, 2012, 6:06 PM EDT) -- A California hospital network on Thursday agreed to pay $16.5 million to avoid prosecution and resolve allegations that it doled out kickbacks for referrals of patients from Los Angeles' Skid Row and ripped off Medicare and Medicaid by providing unnecessary treatment to the homeless beneficiaries.

Pacific Health Corp., which expects to dodge criminal prosecution under the settlement, was accused of cutting checks to middlemen who steered indigent clients to its hospitals and setting up bogus consulting contracts to make the payments look legitimate.

“Hospitals colluding with...
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