Sacred Heart Hospital in Chicago Closes With Little Notice

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.

More Articles on Hospital Closures:

Turnaround Firm Takes Over Chicago's Sacred Heart After CEO's Arrest
CEO, CFO of Sacred Heart Hospital in Chicago Arrested
Sacred Heart Health System to Further Cut Workforce

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