Los Angeles Hospital Owner, Recruiter Indicted In Skid Row Medicare Fraud Scheme

A principal and CEO of a privately-owned Los Angeles hospital and a man who allegedly recruited homeless patients from L.A.’s Skid Row were arrested last Wednesday following the unsealing of a 21 count federal indictment charging them with operating a sophisticated health care fraud scheme. Dr. Rudra Sabaratnam, CEO of City of Angels Medical Center, was indicted on eight counts of paying kickbacks for patient referrals. Estill Mitts, who operated a storefront “Assessment Center” in skid row, was indicted on four counts of receiving kickbacks for patient referrals, six counts of money laundering and two counts of tax evasion. Mitts and stringers who worked for him allegedly brought the patients to the hospital in exchange for sham consulting fees arranged by Sabaratnam; the hospital allegedly submitted bills to Medicare and Medi-Cal for unnecessary medical treatments or in some cases for treatments never performed. A related civil case has been filed by the City of Los Angeles naming two more hospitals and more defendants, indicating that more federal criminal charges may be forthcoming (LA Times, DOJ).