Former City of Angels hospital exec Rudra Sabaratnam has pleaded guilty to a scam to defraud Medicare and Medicaid. The scam involved Sabaratnam paying kickbacks for homeless people recruited as patients for City of Angels Medical Center in Los Angeles. The homeless people were paid a small sum to pretend to have illnesses, where they were "treated."
Co-conspirator Estill Mitts also pleaded guilty. He received kickbacks of nearly $500,000, disguised as consulting contracts, for his part in recruiting the homeless.
Sabaratnam will pay $4.1 million in restitution and faces up to 10 years in prison for the fraud.
To learn more about the case:
- read this Modern Healthcare piece (reg. req.)