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Suit says Pacific Health Corp. hospital conspired to fill beds

Orange County Register, June 10, 2014
A whistleblower lawsuit claims that a now-shuttered Los Angeles hospital owned by Tustin-based Pacific Health Corp. bilked untold millions from Medicare and Medi-Cal over nearly a decade through an illegal kickback scheme in which it locked elderly and disabled people into a psychiatric ward without medical or legal grounds and billed the government for their unnecessary care. The lawsuit, filed in federal court in Los Angeles by a nurse who was later forced out by the company, says that the administrators of Los Angeles Metropolitan Medical Center conspired with a group of doctors, an ambulance company, a medical marketing firm and a number of nursing homes around the Los Angeles area to keep its psychiatric beds full, because they paid better than other types of care.