TUSTIN, Calif. (AP) — Pacific Health Corporation officials say they’ll close their three remaining hospitals, in part because of legal costs associated with allegations they recruited homeless people to charge Medicare and Medi-Cal for care they didn’t need.
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 cease after all patients are transferred.
In August, Pacific Health Corporation agreed to pay $16.5 million for allegedly engaging in an illegal kickback scheme to recruit homeless people from Los Angeles’ Skid Row to become patients at the hospital, where some received unnecessary treatment.
As part of the settlement, PHC’s Los Angeles Doctors Hospital pleaded guilty to conspiracy for the illegal kickback scheme.