A lawsuit alleges that administrators at a now-closed Los Angeles hospital owned by Pacific Health Corp. conspired with a group of physicians for a Medicare and Medicaid kickback scheme, according to an Orange County Register report.
The suit was filed in federal court in Los Angeles by Julie Macias, a registered nurse who formerly worked in the psychiatric evaluation unit at Los Angeles Metropolitan Medical Center. Her lawsuit was originally filed in early 2012, but held under seal until last week.
The suit alleges administrators of Los Angeles Metropolitan Medical Center conspired with a group of physicians, an ambulance company, a medical marketing firm and a number of nursing homes around the Los Angeles area to allegedly keep the hospital's psychiatric beds full for reimbursement purposes, according to the report.
The CEO of Pacific Health, Gary Lewis, did not return numerous phone calls seeking comment, according to the report. Bernard Broermann, founder of Pacific Health, has called the complaint "groundless," according to the report.
Hospital parent Pacific Health closed its hospitals — Metropolitan Medical Center and three others — in 2013.
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