Former Medical Center Owners Allegedly Brought Homeless to Facility for Unnecessary Treatment

The DoJ announced that Los Angeles businessman Robert Bourseau and Dr. Rudra Sabaratnam will pay $10 million for a Medicare and Medi-Cal fraud scheme arising from their former ownership of the Los Angeles City of Angels Medical Center.  The government’s complaint alleged that Bourseau and Sabaratnam directed a scheme in which the City of Angels paid “recruiters” employed at homeless shelters to transport homeless clients by ambulance to the hospital for medical treatment regardless if the clients needed treatment or requested such treatment.  Medicare and Medi-Cal would then be billed for these services allegedly given to the homeless patients.  The government maintained that prohibitions against illegal kickbacks are important to ensure that financial measures do not underscore the importance of the medical judgement of physicians and health care workers.  Bourseau and Sabaratnam have plead guilty to criminal charges for violating Anti-Kickback Statute, as well as pleading guilty to the civil charges.

To report Medicare Fraud, contact Frohsin & Barger.