Pacific Health Corp. in California Fined $7M for Stiffing Employee Paychecks

The California Department of Industrial Relations has fined Pacific Health Corp., a hospital chain based in Los Angeles, more than $7 million for failing to pay employee wages and forcing employees to wait for payments, according to a Los Angeles Times report.

State labor officials said the problems existed at four Pacific Health hospitals: Anaheim General Hospital, Bellflower Medical Center, Los Angeles Metropolitan Medical Center and Tustin Hospital. The state looked into the situation in September after an anonymous hospital employee said Bellflower Medical Center was bouncing checks. Pacific Health executives did not provide comment to the Los Angeles Times.

This is the second legal battle Pacific Health has faced in seven months. In August, the hospital chain agreed to pay $16.5 million to resolve allegations it paid illegal kickbacks in exchange for patients recruited among homeless populations and consequently provided allegedly unnecessary care to those patients.

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