Former owners of medical center to pay $10-million settlement in alleged Medicare fraud scheme

The two former owners of City of Angels Medical Center will pay $10 million as part of a consent judgment over allegations that they performed unnecessary medical work on homeless people recruited from skid row shelters as part of a Medicare fraud scheme.

The case involves Los Angeles businessman Robert Bourseau and Dr. Rudra Sabaratnam, who were accused by federal prosecutors of Medicare and Medi-Cal fraud.

Authorities alleged that City of Angels found healthy homeless people in downtown Los Angeles and brought them to various medical facilities, where they received medical treatment they didn't need. The defendants then allegedly charged the government.

"The government’s complaint alleged that Bourseau and Sabaratnam directed a scheme in which City of Angels paid “recruiters” employed at homeless shelters in the skid row area of the city to deliver their homeless clients by ambulance to the hospital for medical treatment regardless of whether their clients in fact needed or requested such treatment," a U.S. attorney said in a statement.

"The City of Angels would then bill the Medicare and Medi-Cal programs for a variety of medical services allegedly rendered to the homeless patients, many of which were not medically necessary."

--Shelby Grad

Comments

[Bill]

No wonder the health care crises is severe, crooks abound!

[ferenc]

how come they are not in the slammer?

[Jim M.]

WHAT??? No prison time for these scumbags? No wonder there's so much medical fraud in this state. These two belong in the lock-up for a LEAST 10 years.
This is disgusting.

[Kat]

I am a heart parent, but I went into the ER for a sever ear infection on a weekend. They hooked me up to an IV and a heart monitor and did Xrays saying it was necessary to cover their butts in case I have heart failure while they are treating my ear infection.......The bill was horrendous and it went straight to Medical/Medicare for full coverage...I was given a script for antibiotics and sent home in under 2 hours....If you don't let them perform extra and unasked for services then they will refuse to help you ....and if you get up and leave they write you off as leaving against Doctors orders....with no prescription for your condition.....the scam is far more wide spread then dwith just these 2 guys here....it's everywhere.....cuff em !!!! then fine em!!!!