Former Operator of City of Angels Medical Center Agrees to $10M Consent Judgment for Medicare and Medi-Cal Fraud Scheme

Intercare Health Systems, formerly doing business as Los Angeles' City of Angels Medical Center, has agreed to a $10 million consent judgment to resolve a civil lawsuit against Intercare by the United States and the state of California for a Medicare and Medi-Cal fraud scheme, according to a U.S. Department of Justice news release.

City of Angels was accused of violating the False Claims Act and Anti-Kickback Statute by paying illegal kickbacks to recruiters employed at Los Angeles homeless shelters to deliver homeless patients by ambulance to the hospital for medical treatment regardless of whether their clients in fact needed or requested such treatment. City of Angels would then bill the Medicare and Medi-Cal programs for a variety of medical services allegedly rendered to the homeless patients, many of which were not medically necessary.

Robert Bourseau and Rudra Sabaratnam, former owners of Intercare, entered into $10 million consent judgments in January.

Read the DOJ's release on Intercare Health Systems.

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