California-based hospitals to pay $16.5 million to settle allegations the facilities were treating homeless to defraud the government

LOS ANGELES, Aug. 24 (UPI) — A California-based group of hospitals must pay $16.5 million to settle allegations the facilities were treating homeless people to defraud the government.

Los Angeles Doctor’s Hospital Inc. — a subsidiary of Pacific Health Corp. — pleaded guilty to conspiracy to defraud Medicare and Medi-Cal by paying “marketers” to recruit the homeless people who acted as patients from 2004 until 2007, CNN reported Friday.

The patients were treated for health conditions even if they did not require treatment, a release from the U.S. attorney’s office said.

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