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Hospital Owner and "Skid Row" Assessment Center Operator Arrested in Healthcare Fraud Scheme That Recruited Homeless and Fraudulently Billed Government for Unnecessary Services

By Robert David, Esq.

According to the L.A. Times, the owner of a Los Angeles-area hospital and a man who acted as a recruiter were arrested August 6 on federal charges of defrauding Medicare and Medi-Cal by providing unnecessary health services to homeless people who were recruited from ?Skid Row? with promises of payments. Rudra Sabaratnam, 64, of Brentwood, an owner and top executive of a hospital; and Estill Mitts, 64, who resides near the Miracle Mile section of Los Angeles, the operator of a Skid Row ?Assessment Center,? were arrested without incident. Sabaratnam and Mitts were indicted under seal by a federal grand jury last week. The 21-count indictment, which was unsealed this morning following their arrests, alleges that Sabaratnam and Mills conspired to recruit homeless people to receive unnecessary health services for the purpose of committing health care fraud...continue to full post

Full post as published by Health Care Fraud Blog on August 14, 2008 (boomark / email).