Less than three months after its CEO and CFO were arrested for alleged fraud, Sacred Heart Hospital in Chicago has abruptly shut its doors, according to a Chicago Tribune report.
The hospital's closure was sudden, as officials at the Illinois Department of Public Health received a phone call from hospital officials yesterday with the news, according to the report.
Illinois requires 90-day notification of a hospital closure. A spokesperson from the department told the Chicago Tribune it was uncertain what actions or sanctions may be sought against Sacred Heart for violating this regulation.
In mid-April, federal authorities arrested Edward Novak, owner and CEO of the 119-bed for-profit hospital, CFO Roy Payawal and several physicians for allegedly participating in a kickback scheme. The alleged scheme involved physicians receiving more than $225,000 in cash and other forms of payment for referring Medicare and Medicaid patients to Sacred Heart.
Recent developments in the case include a state and federal inspection report that quoted Sacred Heart staff recalling the provision of allegedly unnecessary tracheotomies on patients.
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